TheDermotCompanyInc.
Fromthegroundup
The Dermot Company seeks to distinguish itself in the crowded New York City real estate development space with its integrated approach, reports Glenn Richardson
he New York City real estate development and partnering and joint-venturing as investors market is every bit as crowded as the island of with other third parties. Manhattan itself. To set itself apart from others Past and current Dermot partners include in its industry, The Dermot Company Inc. has Citibank, Equity Residential Properties, Fannie focused on diversification, building a rounded Mae, Grosvenor Investment Management US business that includes developing, investing in Inc., Guaranty Bank, the New York City Housing Tand managing multi-family housing units in New Development Corporation, the New York State York and, more recently, across the country. Housing Finance Agency and the New York City Founded in 1991 as a real estate developer, Economic Development Corporation. Dermot today uses a range of techniques and Examples of those partnerships include business models, from ground-up development to Clinton Green, a 15-story, luxury residential and buy-and-hold strategies, turnaround assignments retail project built with backing from the AFL- and adaptive reuse, an approach the company CIO’s Building Investment Trust and completed says gives it the flexibility to get involved with a three full months ahead of schedule. Dermot variety of projects. With 50 employees and about also partnered with the AFL-CIO’s investment $300 million worth of projects in the works each arm on The Opal, a 388-unit apartment project year, Dermot has had a hand in many high-profile in the Kew Gardens Hills section of Queens that building efforts over the years. While it still engages was the first new large-scale residential project in in direct development—using its experience that area in two decades. to navigate the permitting and construction One of the more unique projects in the challenges of building in Manhattan—Dermot Dermot portfolio is the project now known as can also be found managing multi-family and Archstone Clinton. The project includes 633 mixed-use developments after they are occupied, units of housing, two residential towers and a
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three-theater complex that includes a half-dozen with developers and condominium lofts. Dermot won the right to investors or providing capital EPIC Mechanical build the project after a request-for-proposals as a managing partner to Contractors LLC process run by the New York City Department a project, or by providing of Housing Preservation and Development and mezzanine capital to enable EPIC Mechanical Contractors LLC specializes also secured financing through the New York multi-family and mixed-use in the design, development, installation, State Housing Finance Agency, with the project projects to be completed, and service of heating, ventilation and air- having the distinction at the time of being the using its size and financial conditioning systems (HVAC) in commercial largest ever funded with tax-exempt bonds by strength to secure financing and residential buildings in the NYC, Queens, the agency. The project—which included 15,000 that other developers may and Long Island areas. The company is square feet of public outdoor park area and had not have access to. For a privately owned, bonded business. We 20 percent of the units set aside as affordably instance, Dermot partnered offer a combination of experience, skills priced housing—also won certification as a with Clipper Capital by and expertise to our clients and place an green facility from the Leadership in Energy and investing in the purchase of emphasis on understanding their needs. Environmental Design (LEED) program of the US 403 units of a 535-unit gated Green Building Council. co-op apartment complex in The project was complicated by its location. It Queens. It also entered into DeSimone Consulting was built in the air rights over two active Amtrak a joint venture agreement railroad lines connecting to nearby Penn Station, as an investor with Apollo Engineers with construction and excavation work having to Real Estate Advisors and DeSimone Consulting Engineers provides be done in cooperation with the railroad’s needs. Metropolitan Housing high-quality, creative structural engineering Dermot is now operating the development in Partners to buy and convert services to architects, owners and partnership with Archstone Smith. buildings at 505 Court developers. Performing structural analysis Dermot has also had a hand in renovating Street and 204 Huntington and design for all types of buildings at all and reusing some New York City landmarks. It Street in Brooklyn, a deal project phases, the firm has tremendous is redeveloping One Hanson Place, one of the that will result in 184 new success with clients who insist on personal tallest buildings in the borough of Brooklyn and condominium units being attention and demand inspired engineering. a nationally recognized landmark built in 1927. available for sale, with nearly Our firm’s breadth and diversity are key The luxury condominium project is just across 200,000 square feet in total. strengths, and our desire to continually the river from Manhattan and also includes some Dermot also operates a evolve separates the firm from its peers. 75,000 square feet of retail and professional subsidiary, Dermot Realty office space. Management Co. Inc., that Outside of New York, Dermot has been involved specializes in the day-to-day management of in developing a number of garden-style apartment multi-family apartment communities and has a communities, often with a similar high-end bent number of projects now under management both to them. Dermot helped develop Champions and in New York City and across the country. Nor’Wood, a 332-unit luxury garden apartment One of the challenges now facing Dermot is the complex in a master planned community in redevelopment of the Battery Maritime Building. Colorado Springs, Colorado. After winning the right to develop a 140-room Not all of its projects are new developments, luxury hotel atop the historic structure, Dermot however. For instance, in Charlotte, North Carolina will also develop the great hall of the maritime it acquired The Timbers, a gated community of building—a 100-year-old structure historically 343 housing units centered around a historic used as a docking point and depot and for river mansion reused as a clubhouse, later reselling ferries that once carried passengers between the project. In Wichita, Kansas, it purchased a Manhattan and Brooklyn—into a public use portfolio of six properties known as Village Park, component. Dermot has said it expects to spend sinking an additional $8 million into renovations $60 million on that part of the project alone, that helped boost rents and reduce expenses. though the original idea of converting the space Dermot has also developed expertise as a co- into a public market proved unfeasible for investment partner, taking part in joint ventures various reasons.
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