DEVELOPMENT OPPORTUNITY
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1 DEVELOPMENT OPPORTUNITY 84 South Union Street Rochester, NY sqft Accepting Bids Open Tours: Mon. June 25th & Wed. June 27th 12PM - 4PM Tamra James Senior Vice President RE Salesperson Tamra@GroveStreetMgt.com Scott Zorn Associate Director RE Salesperson Scott@GroveStreetMgt.com! 1 of 17!
2 DEVELOPMENT OPPORTUNITY DIRECTLY ADJACENT TO STRONG MUSEUM EXPANSION PROJECT! 2 of 17!
3 TABLE OF CONTENTS Area Redevelopment Summary 4 Hotel Development 6 Museum Expansion 7 Mixed-Use Development 8 Property Location 9 Rochester, NY: Economic Profile 10 Zoning & Regulations 11 Property Conditions 12 Floor Plans 13 Inner Loop East Project 14 Downtown Development 15 Tax Information 16 Contact 17! 3 of 17!
4 AREA REDEVELOPMENT SUMMARY In 2016, the City of Rochester publicly released a request for proposal to redevelop an 18.8 acre site directly across the street from 84 South Union, located in the southeast portion of Rochester s Center City. The winning bid was awarded to a partnership comprised of three prominent Rochester-based entities: Strong Museum of Play, Konar Properties, and Indus Hospitality Group, who plan to redevelop the site into a vibrant mixed-use neighborhood. The project is expected to attract more than 400,000 additional annual visitors to downtown Rochester, which will bring in over $130 million per year to the local economy.! 4 of 17!
5 AREA REDEVELOPMENT SUMMARY The proposed project includes a major expansion of the Strong Museum of Play, which will include construction of a 5 story, 310,000 square-foot parking structure containing 1,200 spaces, and a brand new Video Game Hall of Fame, a 100,000 square-foot, 3-story addition to the existing museum. Indus Hospitality Group will build a brand new, nationally-branded, 117,800 squarefoot, 5-story, 175-room hotel within walking distance to the museum. Konar Properties plans to build 5 mixed-use commercial and residential structures, creating over 11,000 square-feet of additional retail space and over 300,000 squarefeet of new residential space. The new development will create small city blocks in the immediate area that promote walking, cycling, and exploring, and will offer residents and visitors access to new dedicated streets, increased street parking, public amenities and extensive green space. All of these publicly-accessible amenities will substantially increase both the vibrancy of the neighborhood and the overall attractiveness of 84 South Union as a place to live for future tenants.! 5 of 17!
6 HOTEL DEVELOPMENT Indus Hospitality Group, a leading Rochester developer, is building a nationally branded, contemporary Hotel directly across the street from 84 South Union at the corner of Union and Adventure Street. The Hotel is design promotes activity at each major corner of the block. There will be a sculptural massing and a swimming pool at Howell and S. Union, a dining terrace at Union and Adventure, and a restaurant at A Street and Adventure. The entire block will be permeable via the Hotel lobby, which will enable Hotel guests and visitors to traverse through the building from the rear porte cohere to South Union. Hotel and restaurant entrances will be clearly accented through architecture, lighting and signage. Lighting will likely include wall-mounted and landscape luminaries.! 6 of 17!
7 MUSEUM EXPANSION The highlight of the neighborhood will be the 100,000 square-foot museum expansion. The expansion will be the new front entrance to the world-renowned Strong Museum, and will house a cutting edge, multi-faceted entertainment destination featuring the Strong Museum s World Video Game Hall of Fame. The Museum expansion s ground floor will be an open lobby space, activated as a reception and orientation area for visitors. The majority of the ground floor will be curtain wall or storefront to promote a visible and highly engaging visitor experience. The Museum expansion will also host a café with exterior access to the public. Entrances to the Museum Expansion will be very clearly accented and illuminated, and the façade will be highly expressive and colorful in variation. Distinct and playful massing will enclose vertical circulation elements at each corner for the expansion.! 7 of 17!
8 MIXED-USE COMMERCIAL & RESIDENTIAL DEVELOPMENT The residential neighborhood will also include four new apartment buildings, two with ground floor retail space on Adventure Street. The design of the apartment buildings will complement The Strong Museum of Play expansion by incorporating similarly innovative street amenities and features. The new buildings will also include traditional neighborhood design features, including a variety of different entrances at street level, which will add to the pedestrian scale of the neighborhood. The ground level entrances will employ entry stoops that imply a shared ownership between the street, pedestrian and resident. Large adjacent sidewalks are planned in order to support walkability for both residents and visitors to the neighborhood. First floor units are raised above street level to create desirable privacy while still providing an eyes on the street level of neighborhood safety. To add a pedestrian scale to Adventure Street, there will be one free-standing, single-story retail building. This building is located at the heart of Adventure Street directly across from the Strong Museum Expansion and Hotel Restaurant, and adjacent to the new mixed-use housing and retail buildings.! 8 of 17!
9 84 South Union is located on a recently enhanced urban corridor, which is poised to become one of Rochester s most prime locations for retail and restaurant activity. The neighborhood will feature excellent walkability, affording residents a comfortable urban lifestyle. The property is conveniently located with easy access to the I-490 Expressway, linking the city to surrounding suburbs, the Greater Rochester International Airport and Interstate 90. PROPERTY LOCATION The East End 84 South Union currently connects the East End to the City of Rochester, making it the ideal spot to enjoy the best of both neighborhoods. The East End is one of Rochester s most desired neighborhoods, offering its residents a safe urban lifestyle, with fine dining, nightlife, entertainment and the arts all within walking distance. The City of Rochester features over 140 festivals and events each year, several of which take place in the East End. For example, the International Jazz Festival brings over 1500 artists and 200,000 attendees to the East End. In addition, less than one mile from the building is Rochester s Blue Cross Arena, home to the Rochester Americans hockey and Knighthawks lacrosse teams. The facility is also popular for events and concerts. The Blue Cross Arena first opened in In the late 1990s, a $41.5M-plus renovation expanded its seating from 7,400 to 12,000, and added 25 luxury suites, expanded food service and a glass atrium. The Greater Rochester Area The City of Rochester is located in Western New York on the southern shore of Lake Ontario in Monroe County. Rochester is located approximately 60 miles east of Buffalo, 50 miles west of Syracuse and 90 miles northwest of Ithaca. Interstate 90 passes just south of the city. Rochester is considered as the major city of the Finger Lakes region, one of the most successful agricultural areas in New York State, known particularly for its over 100 wineries. The Finger Lakes provide both a unique economic driver and travel destination to the Rochester area.! 9 of 17!
10 ROCHESTER, NY: ECONOMIC PROFILE Rochester is a hub for entrepreneurial activity, The Brookings Institute ranked Rochester 13th in the US for patents issued per capita, Atlantic magazine identified Rochester as one of 35 innovation hubs in the country, and the New Republic described Rochester as one of the most innovative-intensive metro areas in the country. Notable Employers With over 29,000 employees in the Medical Center sector and approximately 56,000 jobs across Upstate New York, the University of Rochester is the largest employer in the Rochester area and sixth-largest in the state, including New York City. The University of Rochester Medical Center has drawn over $1.9B in research money for the area and serves as an incubator for a diverse group of entrepreneurial companies, specifically in healthcare and education. Wegmans food markets, headquartered in Rochester, is the third-largest employer in the Rochester area. Wegmans has been in the top 10 of Fortune Magazine's list of 100 Best Companies to Work For every year since it began in The 55th-largest privately held company in the country, Wegmans has expanded to almost 100 stores along the East Coast and is committed to enriching the community, through jobs, food donations or institutional endowments, such as the Wegmans Hall at the University of Rochester. Constellations Brands, the largest wine and spirits company in the country, is headquartered in the Finger Lakes region of greater Rochester. Constellation s portfolio includes iconic and international brands such as Corona, Robert Mondavi and Svedka vodka. Rochester Regional Health, PayChex, Rochester Institute of Technology, Xerox, Sutherland Global Services, Home Properties and Excellus BCBS are additional major employers in the Rochester area. Colleges & Universities Rochester is home to a number respected colleges and universities, including the University of Rochester, the Rochester Institute of Technology, St. John Fisher College and Nazareth College, with over 80,000 students enrolled and approximately 15,000 degrees conferred each year. The long-term investments of these institutions have brought a multitude of projects and economic stimulation to the area, and these schools are leading the way for jobs, technology, and medicine. Moreover, this surplus of nationally-ranked educational institutions based in Rochester has contributed to Rochester being named the Seventh-Brainiest Large Metro Area in the country by The Atlantic Cities. Additionally, Rochester was ranked Sixth-Best City for Healthcare and Education jobs by Multifamily Housing Executive Magazine.! 10 of! 17
11 ZONING & REGULATIONS The property is in a R-3 high-density residential district on a 6,750 square foot lot with 45 feet of frontage and a depth of 160 feet. 84 South Union is outside of any preservation zones or ordinances that would inhibit the re-purposing of the current property for multifamily, commercial or office space. Permitted uses include Single-Family and Multifamily dwellings, live-work space, bed and breakfast establishments, office, and others. Special Permits can be obtained for additional uses. The Strong Museum Expansion Project requires numerous zoning variances. By selecting the submitted proposal, the City of Rochester has demonstrated a significant willingness to allow for variances in order to stimulate economic growth downtown in the East End downtown neighborhood. According to the City of Rochester, the city is considering numerous zoning variances in relation to the Strong Museum Expansion Project. A well-prepared developer who applies for a zoning variance can expect a good chance of approval during this period of focused economic development, allowing for increased optionality for the purchasing developer of 84 South Union.! 11 of! 17
12 PROPERTY CONDITIONS Interior Finishes: The interior of the 3,786 square-foot building has been gutted to prepare for renovations. However, several of the building s historic features were saved in order to create the opportunity of blending modern amenities with historic charm resulting in a unique, coveted space. The artisanal craftsmanship found throughout the building is extraordinary. Highlights include a foyer with natural light from stained glass windows, ornamental railings on a grand staircase, dark hardwood moldings and multiple fireplaces with historic porcelain tile accents. The third floor of the property is not included in the square footage but offers a blank canvas with outstanding views of the city skyline, creating a unique opportunity for attracting future residential tenants. Exterior Finishes: Built in 1925, 84 South Union was created in the Queen Anne Architectural style, as demonstrated by the asymmetrical floorpan and stone foundation. The ornate detail found on the exterior woodwork and colorful stained glass windows represent the skilled craftsmanship of the era. An exterior painting project was completed in 2015 to rejuvenate the face of the building. The historic charm, fine details and elaborate trim were accentuated by strategically incorporating four colors into the design. Landscaping & Parking: Situated on a 45x150 square foot lot, there is minimal need for landscaping at this property. A small courtyard at the front of the building is divided by large stone pavers leading to a large front porch with a spectacular view of the city. To the side of the building are mature shrubs including beautiful burning bushes. Future residents will be able to take advantage of on-site, offstreet parking available behind the building. Roof: After a complete tear off in 2015, the roof was replaced with GAF Timberline HD Shingles over new underlayment and ice and water shield. At the peaks, 60 feet of ridge vent was installed. There is a 50 year warranty on labor and materials. Also at this time, new seamless gutters were installed on the building.! 12 of! 17
13 FLOOR PLANS! 13 of! 17
14 INNER LOOP EAST PROJECT The image above illustrates the transformation of the Inner Loop that is currently underway. The Inner Loop is a highway that circles Rochester Center City, constructed in the 1960s to serve the commuters living in the suburbs and working downtown. Today, as the number of residents living downtown continues to rise, this highway began to be used less. Similar to Boston s Big Dig, this highway was replaced with an urban boulevard and mixed-use development space. Residential neighborhoods that were separated by the highway have become integrated, allowing for further pedestrian movement, increasing foot traffic and demand for local businesses and property. 84 South Union offers the unique opportunity to capitalize on the urban revival emerging throughout downtown Rochester. A renewed interest in downtown living, combined with a recent surge in private development and heavy public investment, has fostered the conditions necessary for a major transformation in the physical and cultural landscape of the area.! 14 of! 17
15 DOWNTOWN DEVELOPMENT The image below, provided by the Rochester Downtown Development Corporation (RDDC), identifies some of the other significant real estate projects underway in the downtown area. At the end of 2017, the RDDC estimated that there is $922.1 million being invested in downtown Rochester through projects that are planned, under construction, or already completed. Another big Rochester Center City story is the growth of the Downtown Innovation Zone (DIZ). There are now 145 innovation and creative class enterprises in the DIZ, up 34% since The four incubators open or in development around Main & Clinton will create a dynamic environment for a wide variety of tech startups. The DIZ is creating a kind of energy in downtown Rochester that we haven t seen in decades, and these new tech startups and rapidly growing innovation companies have the potential to not only fill vacant downtown commercial space, but attract businesses and economic activity to the city for years to come.! 15 of! 17
16 TAX INFORMATION Property Tax Parcel Total 84 South Union $7,425.29! 16 of! 17
17 CONTACT Communications and inquiries relating to 84 South Union should be directed to: Scott Zorn Grove Street Management Real Estate Salesperson Associate Director 38 Windsor Street Rochester, NY Phone: Fax: Mobile: Tamra L. James Grove Street Management Real Estate Salesperson Sr. Vice President 38 Windsor Street Rochester, NY Phone: Fax: ! 17 of! 17
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