TRAMMELL CROW / COURTESY HOTEL
Overview of Trammell Crow Residential
Established in 1977, Trammell Crow Residential (TCR) is one of the nation's premier multifamily real estate firms. Since its inception, TCR has developed over 215,000 multi-family units in most major markets across the U.S. TCR has established itself as the country's leader for multifamily residential developers with its ongoing broad base of multi-family industry research, financial strength, and local market knowledge.
TCR's primary business is value creation through the acquisition, land entitlement, development, and construction of multi-family housing. TCR bases its activity on superior knowledge of local market needs and trends. Seeking properties of the highest caliber that meet with consumer demand, TCR aims to enhance the communities of which they are a part, and ultimately provide superior yields for investors, clients and partners.
TCR's national reputation is complemented by a strong local presence in each of the major markets TCR serves. Local executives acquire, develop and construct multi-family communities as their own businesses. Partners are able to benefit from successful ideas in various parts of the country, as well as relationships that bring capital to bear on great local opportunities. This organizational strategy contributes to the dynamic and entrepreneurial character of our company, making TCR flexible in the face of changing market conditions, responsive to local community needs and a leader in the industry. TCR's enviable track record of success has been achieved through consistent innovation, leadership, and local presence. http://www.tcresidential.com
Courtesy Hotel Redevelopment Proposed Development Details
– Size of property: 2.72 acres
– # of proposed units: 176 (65 units per acre)
1 bedroom – 35%
2 bedrooms – 50%
3 bedrooms – 15%
– Number of floors – 4
– # of Parking Spaces: 300
– Rent Ranges: $1950 - $2700 (Includes one parking space, $100 month for additional parking space)
– Apartments will have spacious walk-in closets, bathrooms, washer/dryer, wall-to-wall carpeting, mini and vertical blinds, and fully applianced designer kitchens
– The community will have a clubhouse featuring an on-site management and leasing offices, clubroom/lounge, business center, state-of-the-art fitness center, and locker rooms, as well as landscaped courtyards and a swimming pool
– Front of the development will face Hempstead Avenue across the street from the parking lot of Liquidators
– Back of the development will run along the train tracks of the WH LIRR station
– Apartments will adhere to the regulations and requirements of the Nassau County Fire Commission and applicable Town of Hempstead codes; in addition they will consult with the West Hempstead Fire Department to discuss specific requirements
– TCR will perform traffic studies to analyze site access and vehicular routes. The traffic studies will be reviewed by the Town of Hempstead and Nassau County during the entitlement process
– Sanitation will be handled by a private carting firm
Application process for prospective renters
– Credit Check
– Criminal Background check for past 10 years
– Occupancy limit to two people per number of bedrooms (e.g. 1 BR maximum is two people, 2 BR is four people, etc.)
– No-subletting will be allowed
– All occupants must be signatories to the lease
– TCR follows federal, state, and local Fair Housing laws
Frequently Asked Questions
1. Isn't the proposed site is too big and arent't there are too many units which will cause congestion?
Trammel Crow Residential (TCR) is proposing to invest $62 million (includes the price TCR is paying for the site) to develop the community which will include a fitness center, a swimming pool, a residents’ lounge, and internet connections in every apartment. In order to obtain a return on their substantial investment, the company needs to build an appropriate number of units. In an effort to reach an agreement with the Town of Hempstead, TCR has reduced the proposed unit count from 220 (80 units per acre) to 176 (65 units per acre).
As far as the size of the rental apartments, the four story structure will be approximately 1/2 story higher than the storage warehouse just to the south of the Courtesy and two to three stories lower than the Bank of America building to the north. The size of the development will be in scale with the rest of the properties in the area.
2. Will our schools be able to absorb all of the children who will be living in the rental apartments?
Based on demographic studies performed by TCR, they believe that the target market will be young professionals and aging baby-boomers seeking a maintenance free lifestyle and features/amenities such as high-speed access, on-site fitness facilities, and garage parking.
TCR does business in accordance with the Fair Housing Act. TCR provides equal housing and service for all people regardless of race, color, religion, sex, national origin, handicap, familial status, or any other protected class as defined by state and local jurisdiction
3. By allowing rental apartments to be built in West Hempstead, are we “urbanizing” the suburbs?
There are numerous villages in Nassau County with rental apartments where the suburban quality of life is completely intact. Garden City, right next door to West Hempstead, is an excellent example. The village has a hotel and numerous apartment complexes. Every suburb of every major city in the country contains rental apartment complexes. Areas such as Bethesda, Maryland and Vienna, Virginia have been able to maintain and, even in some cases, improve upon the quality of suburban life with the presence of rental apartments. Most importantly, the Courtesy Hotel today subjects West Hempstead residents to high crime, prostitution, and drugs which are typically labeled “urban” problems. The development of the site as planned will make these issues non-existent and improve the quality of life for all West Hempstead residents.
4. By allowing rental apartments to be built in West Hempstead, are we setting a bad precedent and opening the door for many other rental property developments?
There are very few areas within West Hempstead left that would have the kind of space needed to build a rental apartment complex. The West Hempstead Civic Association closely monitors and provides input into new proposed developments within our community. Any development that would not be in the best interests of West Hempstead would be vigorously fought by the Civic Association.
5. Is the area suitable for high end apartments? Who will want to live there?
TCR has done a great deal of research and market analysis that has determined the site’s proximity to the LIRR train station will be a key attraction in getting renters to move into the complex. They also believe, based on previous experience with other developments that the apartments will serve as a catalyst for revitalization of the area around the Courtesy Hotel. The young professionals expected to be the primary residents will require services such as banks, gas stations, grocery stores, and restaurants. Trammell Crow and the West Hempstead Civic Association are confident that the demand generated by the residents of the rental apartments will bring a needed economic stimulus to the community.
The new Archstone development which is located at Roosevelt Raceway sits next to a landfill site on one side and the Ref-Fuel refuse recycling plant on the other. Despite that, there is still a very high demand to get into those apartments. TCR’s proposal differs from the Archstone development in that TCR’s proposal has garage parking and interior corridors to the apartments. The Archstone does not have garage parking and has exterior corridors. Starting rents will be priced below those at the Archstone.
The MTA, less than 2 years ago, threatened to shut down the WH LIRR line altogether, and there’s no reason to suspect they wouldn’t do so again were they to face another major budget shortfall. Such a redevelopment at the Courtesy site would all but guarantee that would no longer happen.
6. Are there any Federal, State, County or Town laws and/or regulations which would require Trammell Crow Residential to set aside a percentage of the 176 proposed rental units at the Courtesy Hotel site for low income, Section 8, or affordable/workforce housing?
No. Since TCR will be using private funding (i.e. no public money) to build and develop the area, they are not required to set aside any portion of the 176 rental units for specific categories. In addition, they have stated that they do not develop or have any subsidized housing units. If the Town of Hempstead acquires the property and identifies a private developer through a Request for Proposal (RFP) process, it is possible that some of the development will be required to have some low income, Section 8, or affordable/workforce housing set aside depending on the circumstances.
7. Will the property be locally owned and will there be proper management?
Established in 1977, TCR is one of the nation's largest real estate firms. Since then, TCR has developed over 215,000 units in most major markets across the U.S, including a number on Long Island. TCR has established itself as a leading residential developer with its ongoing industry research, financial strength, and local market knowledge. The company has a strong local presence in each of the major markets it serves. The local TCR executives acquire, develop and construct the developments as their own businesses.
8. Isn't the Town of Hempstead doing something to acquire the Courtesy Hotel in parallel with the private sale to TCR?
In addition to the private sale of the Courtesy Hotel to TCR, the Town's Office of Planning & Development is currently in the process of obtaining approvals for an Urban Renewal Plan to re-develop a much larger areas which would include the Courtesy Hotel property, the parking lot on the north side of Hempstead Ave. and AVF Carting which is on the south side of the LIRR train tracks. If the Town of Hempstead's Urban Renewal Plan is approved by the Nassau County Planning Commission and then the Town of Hempstead Board, the Town will seek proposals from four approved vendors, of which Trammell Crow Residential is one, to redevelop the blighted area. Once a finalist has been selected, the Town will need to obtain all of the properties in the blighted area through the eminent domain process as the Town does not own any of the land. It is unknown at this point how long that process will take. Typically, eminent domain proceedings can take anywhere from 12 to 24 months depending on circumstances. Delays could potentially include litigation over the value of the Courtesy Hotel property prior to its seizure by the Town of Hempstead and the relocation of the Courtesy Hotel, which the Town of Hempstead will be required to do as part of the eminent domain process.
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