Dive Brief:

• Australia-based developer and contractor Lendlease announced this week that it is building an 800-unit apartment development on the waterfront in the New York City borough of Brooklyn. The project, which is estimated to have a value of $718 million (1 billion Australian dollars), is backed by Australian pension fund Aware Super.
• The for-rent development along the East River will take up a full city block — 2.6 acres — and will include about 240 affordable units. The complex at 1 Java Street will also feature a new waterfront esplanade with better access to the India Street pier and New York City Water Ferry, as well as sustainability elements, including LEED Gold certification.
• The project marks the extension of the $2 billion Lendlease Americas Residential Partnership (LARP), which the developer and Aware Super created to develop and hold for-rent residential properties in certain "gateway" cities like Chicago, Boston and New York. Lendlease did not indicate when it will begin construction on the new Brooklyn project.

Dive Insight:

Carlo Scissura, president and CEO of the New York Building Congress, told Construction Dive that the fact that Lendlease acquired the property during a pandemic and economic crisis is a testament to the resiliency of New York City and its real estate market. However, the story is even bigger than that, he said, given that such a major investment is outside of Manhattan. 

"An outer borough like Brooklyn continues to command this type of money and this type of future investment and development," Scissura said. "The fact that you now have a full block of waterfront along the East River that's going to be redeveloped in the coming years is an incredible show of support and investment in the future of New York, and I think that's something to be celebrated."

In the company's 2020 annual report, Lendlease said that creating "urban precincts in key global gateway cities" is a cornerstone of its business strategy. As of the company's year end, it boasted a portfolio of 21 projects in nine major cities worldwide.

Its latest project, the company said, brings its development pipeline in the U.S. to more than $21.5 billion of current and future projects. 

Another of those projects is a $15 billion partnership with Google to develop three major projects in the San Francisco Bay area. Announced in July 2019, Lendlease said it would provide, jointly with Google, master planning, entitlement and development services for 15 million square feet of residential, retail, hospitality and other types of space. 

Most recently, the city of San Jose, California, released updated documents for one of the Lendlease projects, a downtown mixed-use development on 81 acres. The COVID-19 pandemic has cost the project a few months, but the city is now ready for public comments and review of the development, which will include millions of square feet of office, retail, cultural and event space; 4,000 new residences; and 15 acres of parks and open space.