September 2018 ULI Case Studies Tri–State Land Use Council Hudson Park QUICK FACTS Location Yonkers, New York Project Type Multifamily Rental Site Size 8 acres Land Uses Multifamily Rental Housing, Open Space, Retail, Restaurants, Office Keywords/Special Features Transit-oriented development, Waterfront development, Riverfront development, Infill development, Redevelopment, Public/private development Website www.livehudsonpark.com Project Address Hudson Park 1 Alexander Street Yonkers, NY 10701 COLLINS ENTERPRISES A view of Hudson Park from the air prior to the start of phase III. Phase I includes the three mid-rise buildings Developers on the right, phase II includes the two towers on the left and the parking structure, and the phase III tower Collins Enterprises (phases I and II) is currently under construction on the green space between the parking garage and the Hudson River. Old Greenwich, Connecticut Downtown Yonkers is in the background. www.collins-llc.com Strategic Capital (phase III) PROJECT SUMMARY Jersey City, New Jersey www.chinaconstruction.us Hudson Park is a transit-oriented multifamily rental development—adjacent Equity Capital Sources Simpson Housing LLLP to the Yonkers Metro-North train station in the heart of Yonkers, New York— AIG Global Real Estate consisting of four separate buildings built in three phases over a 17-year Berkshire Property Advisors Strategic Capital period. The project is located on a former industrial site of eight acres Debt Capital Sources located between the train station and the Hudson River. The first phase Key Bank HSBC includes 266 apartments in two separate nine-story buildings, the second Union Bank Greystone phase includes 294 apartments in one building with two towers of 12 and Wells Fargo/Freddie Mac 14 stories, and the third phase includes 213 apartments in one 24-story Prudential/Fannie Mae Master Planner tower. The project also encompasses 18,606 square feet of retail and office EE&K a Perkins Eastman company space. Hudson Park was undertaken by Collins Enterprises and involved a Architects Do H. Chung & Partners (phases I and II) public/private partnership and cooperation among various groups, including SLCE Architects (phases I and II) the city of Yonkers, the Yonkers Industrial Development Agency, the state of EDI International (phase III) General Contractor New York, the Metropolitan Transportation Authority, and numerous private Turner Construction (phases I and II) capital sources. Hudson Park will consist of 773 rental apartments when Plaza Construction (phase III) completed in 2018.

casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 1 Introduction Transit-oriented development (TOD) is an Public/private development works best QUICK FACTS obvious area of opportunity for many when developers are truly partners. Hudson Interviewees developers and city leaders today, especially Park, notes John Nolon, a professor at Pace Jeff Anzevino, land use advocacy director, in first-ring suburbs with short transit University and formerly with the city of Scenic Hudson commutes to central cities. But many Yonkers, “shows the importance of cities Arthur Collins, co-founding principal and close-to-city suburbs offer special challenges, working with developers who know the president, Collins Enterprises LLC especially those suburbs in formerly industrial market. The relationship between the city and Stan Eckstut, senior principal, EE&K a Perkins areas with a lower-income population, a poor the developer was a respectful, market-driven, Eastman company school system, and/or image problems. intelligent approach. … There was a lot of Lee Ellman, director, Planning Bureau, Yonkers, New York, was just such a place sophistication in the city of Yonkers.” The city of Yonkers city had staff in place who understood the when Hudson Park was first conceived. Shawn Griffin, co-leader, public finance and Nothing much had happened in downtown economic realities of the development and economic development practice group, Yonkers for decades prior to 2000, but knew what kind of public subsidies were Harris Beach PLLC needed to make something happen, including via a creative public/private partnership Wilson Kimball, commissioner of planning between the city and private developer a legal staff that developed the PDR (Planned and development, city of Yonkers Collins Enterprises LLC, together with state Development and Redevelopment) zone. William Mooney III, senior vice president/group and federal entities and financial programs, Background director, Signature Bank; former corporate something did happen starting in 2001. A Planning for redevelopment along the counsel for the city of Yonkers three-phase apartment development, with downtown Yonkers waterfront has been John Nolon, distinguished professor of law at the completion of the third phase expected in ongoing for almost 70 years. Federal urban Elisabeth Haub School of Law at Pace University 2018, has brought new life to the Hudson renewal funds from the U.S. Department of River waterfront and the Metro-North train Edward A. Sheeran, managing director, Palmer Housing and Urban Development (HUD) were Economic Development LLC; former executive station in downtown Yonkers, and sparked a used by the Yonkers Community Development director of Yonkers Industrial Development renaissance of new development along the Agency to acquire title to the land in the 1960s Agency and special assistant and chief economic waterfront and in the downtown that is still and 1970s, to demolish buildings, and to development adviser to the mayor of Yonkers underway today. prepare the site, but little actual development But none of this would have happened occurred until Hudson Park was started in without a creative public/private partnership 2001. Notes Nolon, “This project [Hudson and the financial commitment of many Park] really was the private sector deal public and private entities, including private that pulled the whole [redevelopment] thing equity partners, a creative land disposition together [for downtown Yonkers].” agreement, city and Yonkers Industrial A predecessor project—Pierpointe-on- Development Agency investments, MTA the-Hudson—was started in the 1980s, investments, a special state tax credit program but due to various legal, community, and called QEZE (Qualified Empire Zone Enterprise), market impediments, only one of the several and state of New York brownfield tax credits. condominium buildings in the planned COLLINS ENTERPRISES Hudson Park is a transit-oriented public/private redevelopment that involved investment from the city of Yonkers, several state of New York programs, the Metropolitan Transportation Authority, and numerous private investors.

2 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org COLLINS ENTERPRISES The Saw Mill River, which runs through the center of downtown Yonkers, was opened up after being covered over for decades, one of many recent investments in the downtown area. The train station and Hudson Park towers are pictured in the background. development was completed, in the 1980s, with reasonable mixed uses in mid-rise Other key investments in the immediate at the southern end of the waterfront. The buildings, reduced and concealed parking, area that bolstered the development included initial idea for this development—to build internal streets, and a pedestrian esplanade the Metropolitan Transportation Authority’s numerous high-rise buildings on top of along the riverfront that incorporated the $43 million restoration of the historic Yonkers multi-level parking platforms—was not well Scenic Hudson easement conditions. train station and improvements to track received by the community or environmental The plan was also very detailed and infrastructure, which began in October 2001 groups. Some felt this initial plan would have prescriptive. Notes Nolon: “The plan was so and were completed in 2004. In addition to a “privatized the waterfront, because they [the specific that the city was able to say to $4.5 million historic renovation of the 1911 developers] weren’t really proposing any kind developers, if you come in with a site plan station building and platforms, the work of public space,” notes Jeff Anzevino, land that is consistent with our master plan, then involved reconstruction of the viaduct that use advocacy director for Scenic Hudson, an we will deem it to be properly zoned. The carries the elevated tracks, construction of environmental group. Scenic Hudson brought plan was essentially PDR zoning, and that a mile-long retaining wall, and replacement legal action that opposed this initial plan saved a huge step.” As a result, a winning of bridges that carry the tracks over Dock and ultimately resulted in a conservation development proposal that conformed to Street, Main Street, and Wells Avenue. easement along the waterfront. the plan would save the developer a huge The city’s plans also involved future When the Pierpointe project stalled, the amount of time and costs. investment in the restoration of the 1901 Yonkers Community Development Agency But to obtain feasible development City Recreation Pier, including the opening reacquired the property after lengthy legal proposals, Yonkers knew it needed to of a new destination restaurant in 2007— proceedings. City leaders then began to invest in the downtown as well. Developers X2O Xaviars on the Hudson—on the upper rethink their approach and brought in the and especially financial backers were not levels. And later, after phase I of Hudson Park planning firm Ehrenkrantz Eckstut & Kuhn interested in acting as pioneers unless opened, the city obtained funding to uncover (EE&K) to develop a concept plan and master they also saw a financial commitment from the Saw Mill River—previously covered by a plan for the waterfront site. The city also the city. Thus, the city of Yonkers and the parking lot—which ran under the center of hired Collins Enterprises, a developer and Yonkers Industrial Development Agency downtown Yonkers, emptying into a basin on adviser, to advise the city on feasibility issues initiated redevelopment efforts by investing the Hudson River in the middle of the Hudson and help it figure out what the vision should around $150 million in downtown capital Park site. be for the property. In 1993, a waterfront infrastructure improvements, including a concept plan was developed, and in 1998 a new public library and Board of Education master plan was adopted. The plan created a headquarters building, and a new downtown more open and pedestrian-friendly approach parking structure. to the waterfront than previously envisioned, casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 3 COLLINS ENTERPRISES The site offers wonderful views of the Hudson River, the New Jersey Palisades, the George Washington Bridge, and the Manhattan skyline. The Site of the Hudson River, with the Palisades’ Pump Station (Westchester County facility), Yonkers is located about 15 miles north tall cliffs visible on the other side of the the Beczak Environmental Education Center, of Grand Central Terminal and only about Hudson. There is very little class A office or and a park. Beyond that are a series of five miles north of Manhattan’s northern hotel space in downtown Yonkers, which is industrial parcels, two of which are now boundary. It has a growing population and dominated by older buildings and retail users. being redeveloped as two large apartment is one of the four largest cities in New York The Metro-North train line runs through the communities, one by AvalonBay Communities state. The Yonkers Metro-North (Hudson Line) city along the Hudson, and the Hudson Park and the other by Extell Development train station, in the heart of the downtown, site itself is located directly adjacent to the Company. is only a 28-minute ride from Grand Central Yonkers train station, between the tracks To the south of the property is a Terminal in midtown Manhattan. While Yonkers and the Hudson River. Three streets—Main condominium building called Scrimshaw is well-located within the metro area, it has Street, Dock Street, and Wells Avenue— House, redeveloped by a developer in the long been overlooked due to social and connect the site to downtown under the 1980s; a parking lot; a new apartment image problems, including a lower-income elevated tracks. Hudson Park residents can development by Mill Creek Residential called demographic, poor schools, and segregation access the station from a western riverfront Modera Hudson Riverfront, just completed in issues. Much of the industry that thrived in entrance without going under the tracks. early 2018; and a Domino’s sugar refinery. the city left long ago, and the area had been The eight-acre Hudson Park site was being Directly to the west of Hudson Park is the troubled by economic stagnation for many used for parking when Collins acquired the city of Yonkers Pier that includes the X2O years until recently. development rights. Xaviars on the Hudson waterfront restaurant. Downtown Yonkers is located where the To the north of the site are the Yonkers Directly to the east are the train tracks, the Saw Mill River flows into a beautiful section Paddling and Rowing Club, the North Yonkers train station, and downtown Yonkers. COLLINS ENTERPRISES A view of downtown Yonkers from an upper level of Hudson Park South, with the train station in the foreground and the new Yonkers Board of Education and library building on the left.

4 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org The Developer and the Idea get the kind of prices needed to support that it eventually placed on the site. Notes Lee Once the city’s master plan for the downtown development. Ellman, director of the Planning Bureau for was initiated, Yonkers released a request for While not all of the city’s investment the city, PDR zoning in Yonkers “is essentially proposals in 1997 to redevelop the Hudson was known prior to the start of the Hudson zoning by project proposal, skin-tight zoning. Park site and received around 12 developer Park project, Collins did know that the Tell us what you want to do, if we approve proposals. As noted, Collins Enterprises city had committed enough to downtown it, then that is your zoning.” The developer had been involved with the redevelopment redevelopment that he could proceed. Collins proposals simply needed to conform to the planning as a consultant to the city, which was confident that he “could secure this land master plan—which prescribed densities and gave it considerable insight into what the to build in some kind of a phased way, which building placement, but not uses—in order to city needed and wanted on the site, the was important for financing purposes, and qualify for this zoning. The plan also reduced politics involved, and what development that the city was obligated in the contract to the parking requirements for the project due concept would actually work. Unlike other build the library and the parking structure to its proximity to the train station. developers that proposed 25-story buildings, [600-plus-car capacity at the intersection There were concerns about the project Collins came in with a proposal that included of Main Street and Buena Vista Avenue] and from some residents. Notes Ellman: “Some nine-story buildings for the initial phase; the get the trolley barn rehabilitated [now a loft low-income and minority residents were company knew this would be more appealing apartment building with the Yonkers Brewing initially opposed to the development, to environmental and other citizen groups. Company on the lower level]. … Without that, believing that they would not be welcomed Collins Enterprises is a family-owned the lenders were not going to come [into the there. That has not been the case at all. development firm based in Greenwich, Hudson Park project].” Each of these assets When there is music on the pier, it is as Connecticut, that has roots going back to is directly across the railroad tracks from mixed a crowd as you would hope it to be. 1971 and beyond. The firm has done several Hudson Park, and each was instrumental in The liberal social scientist in me says this is other transit-oriented projects in the New revitalizing downtown Yonkers. working.” COLLINS ENTERPRISES Hudson Park includes an extensive waterfront promenade that runs all along the riverfront. York region. Notes Arthur Collins, co-founding Approval Process The plan also provides some flexibility. principal and president of Collins Enterprises: Community and environmental groups in Notes Anzevino, in the “second phase, the “We like to go to these sites that have general were supportive of the Hudson Park developer requested an increase from nine strategic assets. Even though we were redevelopment effort, which was not the stories to 12 and 14 stories, with a wider pioneering here, the train going to New case for the predecessor Pierpointe-on-the- lower element in between, to preserve views York in 28 minutes, to Grand Central, was Hudson project. The conservation easement from the library, and with a smaller footprint, something that was really the key.” The obtained by Scenic Hudson required public which was eventually allowed.” In the end, waterfront was also a very attractive feature. access to the waterfront, restricted the says Anzevino, “Hudson Park is the right kind But while the waterfront site was attractive, height of the buildings, and maintained of development around a train station.” for a rental property, notes Collins, “we knew strategic view corridors to the Hudson that we weren’t going to get a big premium River from the downtown streets running for being on the waterfront.” The company perpendicular to the river. initially considered condominiums but The city incorporated this easement into quickly realized they would not be able to its planning process and the PDR zone that casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 5 a long period of time. Notes Shawn Griffin, a consultant to the city with the law firm Harris Beach PLLC: “A deal was struck which stated that if Collins paid higher property taxes, the city would charge less for the land.” Collins was then able to get a refund for the taxes from the state of New York via the QEZE program (described below). Notes Griffin: “That was critical [for the first phase] because it basically helped the developer lower his project costs.” The agreement was also structured such that the land was leased during construction, with fee title transfer upon completion of construction. That reduced the developer’s initial equity requirements, provided an incentive for the developer to perform, and gave the city protection and the ability to easily reclaim the land if needed if the developer did not perform. The agreement also stipulated performance incentives and allowed for a split of any savings if the project came in under budget. The land was acquired by development COLLINS ENTERPRISES The Metropolitan Transportation Authority invested $43 million in renovating the 1911 train station building phase: the phase I site was acquired for $3.2 and platforms, as well as the reconstruction of the viaduct that carries the elevated tracks, construction of a million, the phase II site was acquired for mile-long retaining wall, and replacement of bridges. $3.0 million via a payment in lieu of taxes Development Finance eventually chose instead to sell its interest (PILOT) agreement, and the phase III site was acquired by Strategic Capital. Financing for Hudson Park involved a in the project. As a result, Collins had to partnership that encompassed a variety of find a new equity partner again. Berkshire New York State Empire Zone/ public and private financing entities and sold its interest in the property to Strategic QEZE Program. The Yonkers Industrial arrangements, including several different Capital—a Chinese investor—in 2015, and Development Agency (YIDA) was also equity partners for the various phases, a Strategic Capital also committed to providing instrumental in facilitating the agreement and creative land disposition agreement, city equity for the third phase of Hudson Park. the financing, as its status as an industrial and Yonkers Industrial Development Agency Strategic Capital also owns Plaza development agency allowed for special state investments, MTA investments, the QEZE Construction, which was selected to build financing programs if the project created (Qualified Empire Zone Enterprise) tax credit phase III. With the sale to Strategic Capital, jobs. Notably, the city and the YIDA were program, and state brownfield tax credits. Collins retained only a small ownership able to get the site included in New York’s interest in the project and serves as an Qualified Empire Zone Enterprise (QEZE) Equity and Debt Capital. Hudson Park adviser for the new owners and as a liaison program. According to the Yonkers website: required several private equity investment with the city and the state. partners over the three phases of the project. The Yonkers Empire Zone (EZ) consists of Key Bank provided a $45 million Collins first brought in Simpson Housing and designated areas within the city that offer construction mortgage for the first phase, the State of Michigan Retirement System special incentives to encourage economic and HSBC provided $92 million of debt for (SMRS) to provide the equity dollars for development, business investment the second phase. Greystone and Fannie Mae phase I. For the second phase, the SMRS and job creation. Certified businesses provided $50 million of permanent financing shifted strategies and chose not to provide located within the Yonkers EZ are eligible for phase I and Wells Fargo/Freddie Mac equity; Simpson Housing and SMRS also to receive significant tax credits and provided $63 million in permanent financing put their equity stake up for sale. Collins benefits. Under the program, eligible for phase II. was able to arrange new equity financing businesses in these areas can qualify with AIG Global Real Estate, which bought Land Disposition and Development for property tax refunds, wage-based tax out Simpson Housing in 2006 and provided Agreement. A key element in the financing credits, state sales tax exemptions and equity financing for phase II. plan was incorporated into the land reduced utility and telephone rates. Subsequently, in 2008–2009, the disposition and development agreement, One of the primary goals of the Empire financial crisis hit AIG. Collins convinced which laid out the steps, timetable, and Zone Program is to assist eligible AIG to sell its interest to a new investor that terms for transfer of the land from the city companies, which are committed to Collins found, Berkshire Property Advisors, to the developer. The agreement allowed growing their labor forces. In exchange which became the lead equity partner in the developer to initially lease the land, for creating new jobs, these companies, 2012. Berkshire was also initially interested then allowed for a favorable land payment known as Qualified Empire Zone in providing equity for phase III, but in exchange for higher property taxes, over Enterprises (QEZEs), are given the

6 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org opportunity to operate on an almost developer’s taxes were refunded by the state. around $25 million, which the investors got “tax free” basis for up to ten years, with The developer did need to endure audits, back when they filed their tax returns. This additional savings available on a declining which in some cases allowed the state to was critical during phase II for equity investor basis during years 11 through 15. QEZEs delay some of the tax refunds for 12 months AIG, which was a large New York state within Yonkers’ Empire Zone are eligible or longer, creating a financial challenge. taxpayer. The tax credit was also extended for state sales tax exemptions, as well as Hudson Park also received exemptions into phase III. real property and business tax credits. from state sales taxes (which applied to Phasing. Phase I, which consisted of the (www.yonkersny.gov/work/department- construction materials) and mortgage two structures (including two towers) on of-planning-development/development/ recording taxes, which in New York are high both sides of Main Street, was completed in business-economic-development/empire- in comparison with other states. All of these November 2003 at a cost of $60.3 million, zone-program) exemptions were extremely important to and phase II (the building north of Dock The Hudson Park project and its investors protect investors. Notes Collins: “Without Street) was completed in 2008 at a cost of qualified for this program and its tax benefits. those financial incentives, the project could $124.8 million. Phase III (north and west Hudson Park received a 15-year real estate not deliver market-rate returns to investors.” of phase II) was just topping out as of early tax exemption through the state. The deal The state QEZE program has since expired. 2018, with completion scheduled for later involved the developer paying taxes to the Brownfield Tax Credits. Hudson Park 2018, with an estimated cost of $100 city, and the state would then reimburse the was also located in a brownfield. New York million. developer for the full amount of taxes paid established the Brownfield Cleanup Program after tax returns were filed. The developer in 2003—after phase I of Hudson Park was paid no taxes during construction as well. well underway—providing refundable tax Taxes for the first ten years were fixed, and credits of 10 to 22 percent of total then in year 11 the taxes were set to increase depreciable capital costs. As a result, at around 20 percent per year such that in brownfield tax credits came into play for year 16 the full property tax would be due. phase II of Hudson Park, which involved a As noted, the developer also agreed to higher development cost of around $125 million. tax payments in return for a lower land sale The brownfield credits added up to price; this helped the city, while the approximately 20 percent of project costs, or COLLINS ENTERPRISES Hudson Park has brought new life to the waterfront, including summer concerts in the pavilion.

casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 7 SITE PLAN

Phoenix

North River Apartments

Clermont COLLINS ENTERPRISES

Planning, Design, and garage—a separate building—in the middle. seven, four, and two stories as it approaches Construction The entrances to the building include one Main Street. This building plan also involves a U The Hudson Park plan was arranged around from Main Street on the north side of the shape, with a parking structure located at the an open-space and street layout that was building and one off Pierpointe Street at center, surrounded by the buildings on three established by the city during the master the southern end. Residents can also enter sides. The space facing Main Street consists planning process. As noted, the plan was directly from the parking garage. The of ground-floor retail/restaurant space and developed by EE&K, led by Stan Eckstut. developer deliberately avoided stacking commercial/office space on the second level. Eckstut had previously worked on waterfront residential on top of parking due to premium The entrance to the Phoenix is from Alexander plans for Battery Park City in New York. The construction costs for stacking housing over Street on the east side of the building. idea for Hudson Park, notes Eckstut, was parking decks. Hudson Park North. Hudson Park North, to bring “an authentic neighborhood to the The Phoenix apartment building is located the second phase, also known as the North water’s edge, with real streets, with mixed just north of the Clermont, across Main River Apartments, was designed by the same use, and a variety of buildings.” Street, and consists of a nine-story tower architects as phase I and consists of a at the northern end, cascading down to Hudson Park South. Hudson Park South, 14-story tower linked by a four-story building to the first phase, was designed by Do H. Chung & Partners and SLCE Architects, and features two separate buildings with a total of 266 one- and two-bedroom rental apartments, 11,116 square feet of retail/restaurant space, and 7,490 square feet of office space. The plan was to orient as many apartments as possible toward the Hudson River while concealing the parking garage. This phase covered more than half the total site and was arranged on either side of Main Street to establish a strong sense of place and a critical mass in this initial effort. The Clermont apartment building is located at the southern end of phase I. The Clermont is a U-shaped building that consists of two nine-story towers linked along Pierpointe Street (along the Hudson COLLINS ENTERPRISES River) by four- and five-story buildings, Hudson Park South features two separate buildings—including the Piedmont, pictured here—with a total of 266 all surrounding and concealing a parking one- and two-bedroom rental apartments and 18,606 square feet of office and retail space.

8 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org COLLINS ENTERPRISES Hudson Park North consists of a 14-story tower linked by a four-story building to a 12-story tower, all surrounding a central lawn/green space facing the Hudson. a 12-story tower, all surrounding a central Main Street. A publicly accessible promenade lawn/green space facing the Hudson, with is located along the Hudson River in front of an entrance along Alexander Street on Hudson Park South, and a turnabout lane is the east side of the building. The building located between the Clermont and the includes 294 one- and two-bedroom rental Phoenix, with retail and restaurants facing apartments. A separate parking structure is this lane from both sides. A city-owned pier located just to the north of this building. is also located at the foot of Main Street, The second phase involved building an featuring the X2O Xaviars on the Hudson esplanade and other infrastructure (at a cost restaurant on the upper level of the pier of around $13 million). The developer initially building. A pavilion used for entertainment is had to build and pay for this esplanade, and also located at the base of Main Street, and was subsequently reimbursed, once taxes sculptures have been placed in a variety of were filed, via the brownfield tax credits. locations along the promenade. The city paid for the design drawings for the The Saw Mill River, which runs in an open esplanade. plaza and under the train station, empties into a basin along the Hudson that separates Hudson Park River Club. The Hudson Hudson Park North and South. The basin is Park River Club, the third phase designed surrounded by a walkway on three sides, by EDI International, is a 24-story, 213-unit including a bridge over the Saw Mill River on apartment tower at the northern end of the Van Der Donck Street. The new bridge also site, located between the phase II parking includes wooden walkways over the Saw structure and the Hudson River. The original Mill that connect to a newly created back parking structure has been expanded upward entrance to the train station. by two levels (164 spaces) to accommodate A promenade and a small park are also the additional parking needs of this phase located along the Hudson in front of the III building. This new building includes a Hudson Park North and River Club buildings. swimming pool, a large lobby in the front, The Hudson Valley Science Barge, a and a waterfront terrace. sustainable urban farm, is docked along the Open Space, Retail/Restaurant, and Hudson adjacent to this park. The promenade Recreation Elements. The plan features also connects to the Yonkers Paddling and COLLINS ENTERPRISES Hudson Park River Club, the third phase under public open space all along the waterfront, Rowing Club just to the north, a club that construction in 2018, is a 24-story, 213-unit with retail elements facing either the water or has been operating at the northern edge of apartment tower at the northern end of the site. casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 9 COLLINS ENTERPRISES The Dolphin Restaurant is located at the heart of Hudson Park South, along Main Street and near the water. the Hudson Park site for many years. The around $600,000 to the construction costs, well. Since the original opening, Yonkers club facilities are being rehabilitated by the which were reimbursed by the city. Turner has continued to make investments in the developer. Construction built the first two phases, and area, and a business improvement district Streets. As noted, the site can be accessed Plaza Construction is building the third phase. (BID)—the Downtown/Waterfront Business via Main Street, Dock Street, and Wells Parking. The typical requirement for an Improvement District Inc.—was formed in Street. Hudson Park South is accessed via apartment building is roughly 1.3 car spaces 2002, resulting in proactive management Main Street, which connects to Pierpointe per unit, but due to the transit-friendly for the downtown area. With new apartment Street running along the Hudson River and location, the actual use pattern is around development underway to the north, south, ultimately to Water Grant Street behind the 0.8 spaces per unit at Hudson Park. Hudson and west—and a shortage of housing in building. Van Der Donck Street runs parallel Park includes a total of 812 parking spaces, New York City—the best days for Hudson to the tracks and connects Hudson Park a ratio of 1.05 per unit. Park and downtown Yonkers may well be in North and South, while also connecting to the future. Marketing, Management, Alexander Street, which provides access to Marketing and Positioning. The project the north parking garage and other sites and Performance was positioned to attract millennials and beyond, including new apartment complexes Despite the fact that the first phase opened commuters seeking proximity to New York being undertaken by AvalonBay and Extell. in the wake of the dot-com crash of City. The high cost of housing there was a Access to Hudson Park North and River 2000–2002 and the second phase opened prime driving force underpinning the Hudson Club is via Dock Street and Wells Street, during the financial crisis in 2007–2008, Park concept. The transit-oriented nature of which connect to Alexander Street and Peene Hudson Park has performed remarkably Lane, which together surround Hudson Park North. Architecture and Construction. The phase I buildings are varied masonry and plank structures and use a Yonkers vernacular architecture featuring brick exteriors with bay windows. Ceilings are around eight feet four inches to eight feet six inches in height. The buildings were designed to maximize the number of apartments that look to the water; there are no balconies. As with many redevelopment sites, during construction the construction team

uncovered underground obstructions and old COLLINS ENTERPRISES foundations that were unexpected, adding One of the lobby areas in Hudson Park.

10 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org the development was especially appealing to millennial renters without cars and employed in New York City. However, residents are not all coming from New York City, as might be expected. New renters are coming from Westchester County in New York, Fairfield County in Connecticut, and even from New Jersey. Perhaps the best marketing tool for Hudson Park was the train station itself. Riders traveling along the Hudson Line are prime renter candidates for the project, and every day they can see for themselves the quality of the Hudson Park development, its proximity to the train station and the river, and the commute time to New York City. Banners on the buildings have attracted interest from many train commuters. COLLINS ENTERPRISES A typical bedroom in Hudson Park, offering views of the Hudson. Online marketing was also a primary tool, notably Apartments.com. Notes Collins, Management, Parking, Events, and night during the summer than it ever was “Everyone rents online today, so posting Impact. The property has been managed by before. Most of the events happen in the to apartment internet sites is the name of Collins from the outset, but this may change square at the base of Main Street, including the game. You can see the place, file an under the new Strategic Capital ownership. concerts and movies. Major events include application, and get approved before even The parking on site is largely restricted Arts Weekend in the spring and Riverfest visiting the project.” to residents, with entrances to the parking in September; both draw around 5,000 structures for residents only using a key to 10,000 people. Other entities in the Apartments, Rents, and Leasing. All card. Parking spaces are optional and offered downtown have also created more activity apartments are either one or two bedrooms separately from the rental apartments. The as the market has improved. in the first two phases, with the addition parking spaces that are leased are assigned of studios to the third phase. There are no Demographics and Fiscal Impact. As to a specific unit, and the parking space three-bedroom apartments. Apartments were of 2015, there were approximately 761 is part of the lease. Notes Collins: “If you designed to be about 15 percent larger than residents in Hudson Park South and North, don’t do it that way, if you do it first come what renters would typically find in New including 58 children. The average age of the first served, it actually does affect the rent.” York City, at a cheaper price. Apartments residents is 42; Hudson Park South residents Because half of the one-bedroom residents include some units with dens and 51 floor had an average income of $92,025, and do not own cars, the parking ratio is suitable plans. Apartments in phases I and II range Hudson Park North incomes averaged for Hudson Park as a TOD development. in size from 764-square-foot, one-bedroom $109,472. The primary reasons residents Despite the lack of water activities, the apartments for $1,700 per month up to gave for moving to Hudson Park were, in waterfront promenade is very active, and 1,322-square-foot, two-bedroom apartments order of importance: 1) move closer to work, attracts not only residents of Hudson Park, with a den for $2,800 per month. 2) relocate from New York City to obtain but also Yonkers residents of various racial Collins observes, “We had no problem larger space and amenities, 3) job transfer, and ethnic backgrounds, many visiting leasing up for either phase, including the 4) leaving home, 5) divorce, 6) unhappy with with children. The restaurants also attract second phase that came on line in 2008. I current housing, 7) upgrading, and 8) down- people from New York City as well as other think 2009 was one of the best years that sizing. areas of Westchester County. Notes Ellman, we had in terms of pace and renewals. … Hudson Park has generated some “Everybody seems to be mixing it up rather [Hudson Park] has never had a problem with additional costs for the city as it relates to nicely. It’s very busy. It’s a good demographic vacancy, even during the 2008–09 financial police, fire, water and sewer, and school mix.” The amphitheater is programmed with crisis. Being close to the city where there is funding, but city officials have not deemed music every weekend of the summer. High a shortage of housing, demand was there.” these costs to be excessive in relationship to school prom groups come down to the water However, rents have remained fairly flat the benefits. Each new pupil costs Yonkers as well, and the waterfront has become an since Hudson Park opened in 2003, with approximately $20,500, according to Kimball. important focal point for the community. little real growth. Pushing rents “has been a There are no figures available regarding Events are an important part of the plan. challenge,” notes Collins. The developers are the number of Hudson Park children who Notes Wilson Kimball, commissioner of hoping to get to $3.00 per square foot for attend Yonkers public schools, but if half the planning and development for Yonkers, “The the new building; as of early 2018 Hudson children attended public schools in Yonkers, current mayor has made an effort to work Park was getting around $2.50 per square that would come to a total of $594,500 in with the BID and the developer to develop foot for the phase I and II buildings. school costs. For fiscal year 2016–2017, more programming for the waterfront.” The The property has provided attractive Hudson Park generated $2,293,690 in BID programs the music pavilion as well performance thus far; net operating income city/school taxes, and for calendar year as larger events. Observes Kimball, “What for 2015 totaled $3.75 million for phase I 2017, the project generated $356,310 in you will find is that it is a lot more active at and $5.2 million for phase II. county taxes. casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 11 Notes Ellman, “We tend to look at [fiscal] took the risk to make that vision a reality. of a phase I lobby into a coffee shop to create impacts in one of two ways: for municipal Now, with that successful project moving more social space. The phase III building is services like police and fire, there is a through three phases, the train station devoting much more space to such amenity ‘pass/fail’ review, and the development renovations complete, historic Recreation areas, including a 25th-floor room that looks was found to have no significant impact on Pier renovated, new library built, and Saw over the water. The third phase will also have those services. For infrastructure such as Mill River daylighting project generating a pool, which was not a feature in the first water and sewer, the review is based upon additional investment in the area, the Yonkers two phases. sufficient service being available to meet waterfront is widely considered a success The retail in general does not have critical code and serve the site. I … do recall that story.” mass and thus is not a major component the third building, north of the Saw Mill Today, many new apartment projects are of the project. The Dolphin Restaurant draws River, had to bring additional water service popping up in and around the downtown and patrons, especially when the weather is good, in from the east of the railroad to meet the the riverfront. Notes Kimball: “Since that time but some other retailers are seasonally service needs. In general, we really looked [Hudson Park phases I and II], we have added challenged. The proximity to the train station at the Collins development as a kick-starter a lot of housing in the downtown … we have is a major plus for the apartments, but the for development in the downtown, thinking a thousand apartments under construction train tracks themselves divide the property less about the balance between expense and now and another 2,000 approved. I think a from the rest of downtown, greatly return; it was not a cold, rational business lot of that is because … people who took constraining the success of the retail in deal for the city. The calculus was, will the train saw the housing on the water … Hudson Park. this development help put Yonkers on the and were inspired by Collins’s model.” Since One shortcoming of the project, according development map for our region? It took a Hudson Park, other developers have come to some observers, is that the water itself couple of real estate cycles for the answer to into Yonkers, including AvalonBay, Extell, and is not very active, with little boating activity. come up as yes, but it did bring the notice to RXR Realty. Beyond these developments, Notes Eckstut: “The problem with a waterfront the city and was the catalyst for the growth observes Kimball, “I don’t expect to see a is that it’s an edge, so unless you have that occurred most recently.” lot more housing [in the future], but I do something that’s very active on the maritime expect to see a lot more services filling in side, it’s an uphill battle to make a place feel Observations and Lessons the commercial space.” The next phase of like it is real and part of the city fabric. … At Learned improvements will likely be retail, restaurants, Hudson Park, we just don’t have very much Pioneering development in a blighted entertainment, and perhaps a hotel. activity on the water.” The newest projects location is a risky business, but with the Amenities and social areas are critical in that Eckstut is undertaking begin with a right elements and partnerships in place, multifamily developments. If he could change water plan even before there is a land plan. development can not only work, but also anything about phases I and II, notes Collins, Notes Eckstut, “A barge swimming pool might can be catalytic for the surrounding area. “we would have made a much more be a good addition to help activate the water Observes Anzevino: “Arthur Collins should be prominent and possibly separate amenity, a area. Barges for restaurants might also work. commended as one of the earliest pioneers building or an area … or possibly introduced Hudson Park needs a maritime plan.” who had a vision for the waterfront and a roof terrace.” The company did convert part COLLINS ENTERPRISES Hudson Park has transformed the Yonkers waterfront, and many more developments are now emerging both to the north and south along the Hudson River. 12 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org Eckstut also reflects that there is at the time, notes Kimball, “we were very input before we elected to proceed with any “evidence of too much planning, not enough fortunate to have gotten them [Collins] here one portion. I’m particularly proud of the way leaving opportunities for surprises. We were … and they have really contributed to the we created benchmarks that various parties probably naive to think that all this ground- rebirth of the downtown. At the time they were required to meet, which in turn would level space could be animated with retail were here, they were the only ones here— require the various partners to complete next and restaurants. [We should have included] they were total pioneers—and it sparked all steps.” more perpendicular streets and not such of this amazing development.” Asked whether Over the next several years, the Yonkers a long parallel street. A more varied urban the subsidies were too generous, Kimball waterfront should become even more fabric could have been done. Smaller blocks, responds: “I would say no. I would say we successful as new apartment communities smaller streets, more alleyways, which needed them, and they needed us, and we are completed to the north, south, and east could have led to more stick construction. worked it out.” of Hudson Park. This will likely create a The nearby city streets are very narrow and Notes William M. Mooney III, former much longer and more active waterfront vibrant, and this is what Hudson Park does corporate counsel for Yonkers, “I believe the area. Notes Anzevino: “For a riverfront not have. … I only wish there was more major strengths of this project were that walkway to really be compelling and useful variety of building size, type, and image.” there was true collaboration between the to people, it needs to be long and connect The actual financial subsidies in a parties, a true public/private partnership, a lot of different destinations, uses, and public/private partnership are always difficult not just in name only. Proper comprehensive neighborhoods.” That is likely to happen in to calibrate for cities. Some have suggested planning was essential, and the project was Yonkers, and when it does, Hudson Park will that the subsidies were too generous, but planned with significant public and private be at the center of it.

casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 13 PROJECT INFORMATION

Development timeline Land use plan

Waterfront development plan adopted 1996 Site area

Request for development proposals issued 1997 Phase I 4 acres

Collins selected as developer March 1998 Residential and commercial 3 acres

Land disposition agreement arranged 2000 Public open space 1 acres

Construction financing arranged 2001 Phase II and III 4 acres

Phase I started 2001 Residential and commercial 3 acres

Library and Board of Education building opened October 2002 Public open space 1 acres

Phase I completed November 2003 Total site area 8 acres

Yonkers train station restoration completed 2003

AIG Global Real Estate investment begins 2006 Parking spaces

Phase II completed Spring 2008 Phase I 314

Berkshire Property Advisors investment begins 2012 Phase Il 338

Hudson Park sold to Strategic Capital 2015 Phase Ill 160

Phase III started 2016 Total 812

Phase III completed Fall 2018 Retail/restaurant information

Gross leasable area 11,116 sq ft Gross building area Percentage of retail GLA occupied 100% Gross Residential Retail Office sq ft sq ft sq ft sq ft Annual rent range (per year) $16­–$32 per sq ft Phase I 312,252 293,566 11,116 7,490 Average annual sales $210 per sq ft Phase Il 329,700 329,700 0 0

Phase Ill 217,410 217,410 0 0 Key retail/restaurant tenants Total 859,362 840,676 11,116 7,490 Tenant Type GLA (sq ft)

Wine in Due Time Wine store 1,300

Convenience IPK Gourmet Inc. 1,390 store Dolphin Restaurant and Restaurants 8,400 Café Hudson

Bark & Purr LLC Pet store 1,991

Le Moulin Eatery & Wine Caterer 1,470 Bar

14 Hudson Park casestudies.uli.org | newyork.uli.org | west-fair.uli.org PROJECT INFORMATION

Office information

Office net rentable area 7,490 sq ft

Percentage of NRA occupied 100%

Number of tenants 2

Annual rents (per year) $23 per sq ft

Average length of lease 5 years

Building

Number of units Unit type Percentage leased

Hudson Park South (phase I) 266 1 and 2 bedrooms 100

Hudson Park North (phase Il) 294 1 and 2 bedrooms 100

Studios, 1 and 2 Hudson Park River Club (phase III) 213 N/A bedrooms

Total residential units 773

Typical unit size and rents

Number of units Square feet

Unit type Phase I Phase II Phase I Phase II Rent range

1 bedroom 149 113 764 776 $1,700–$1,850

1 bedroom with den 41 47 904 794 $1,800–$1,900

2 bedroom 72 75 1,088 1,059 $2,400–$2,500

2 bedroom with den 4 59 1,322 1,175 $2,700–$2,800

casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 15 PROJECT INFORMATION

Development cost information Financing sources

Phase I Amount Debt capital sources Amount

Site acquisition $3,151,596 Key Bank—construction, phase I $45,000,000 Hard costs $48,700,000 HSBC—construction, phase II $92,000,000 Soft costs $8,500,000 Greystone—permanent, phase I $50,000,000 Total development cost $60,351,596

Phase II Prudential/Fannie Mae—permanent, phase I $55,500,000

Site acquisition* $3,012,000 Wells Fargo/Freddie Mac—permanent, phase II $63,000,000

Hard costs** $108,300,000 Equity capital sources Use Soft costs $13,500,000 Simpson Housing Phase I development Total development cost $124,812,000 Phase I acquisition and phase AIG Global Real Estate Phase III II development

Site acquisition $10,000,000 Berkshire Property Advisors Phase II acquisition Phase I and II acquisition and Hard costs $79,000,000 Strategic Capital phase III development Soft costs $11,000,000 Public sector capital sources Use Total development cost $100,000,000 City of Yonkers Paid for infrastructure All phases PILOT, sales, and mortgage tax Yonkers Industrial Development Agency Total development cost $285,163,596 recording tax exemptions * PILOT agreement with Yonkers State of New York Qualified Empire Zone Real estate tax refund over ** $13 million for public works costs reimbursed Enterprise program 16 years through state brownfield tax credit State of New York Brownfield Program Phases II and III only. Reimbursement or credit for 20% of depreciable capital costs. Includes Net operating income, 2015 tax credits of $25 million for phase II. Phase I did not get the tax credits. Phase I $3,750,000 Phase III brownfield tax credits are not available. Phase II $5,232,000

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casestudies.uli.org | newyork.uli.org | west-fair.uli.org Hudson Park 17