Harel to build U.S. college dormitory
The tower will be the second the two have developed at the university's downtown Manhattan campus after building a 609-bed dormitory for Pace at 180 Broadway.
Harel Insurance Investment & Financial Services will build a student dormitory for New York's Pace University in a joint venture with an U.S. real estate developer.
Harel, which has a strategy to develop new sources of income-producing real estate for its portfolio, said on Tuesday it would be teaming up with SL Green Realty Corporation, a commercial real estate investment trust based in New York City, to build the $112 million dormitory.
The tower will be the second the two have developed at the university's downtown Manhattan campus after building a 609-bed dormitory for Pace at 180 Broadway. Construction is due to begin next April and be competed by August 2015.
The project will be financed through the partnership's equity and bank financing and is expected to generate an annual return of over 7%, said Harel, which will own 49% of the joint venture .
"The student dorm market in Manhattan is a stable market characterized by significantly lower supply than demand and a particularly high occupancy rate," said Gadi Ben-Haim, head of Harel>s real estate division.