A mixed-use development of 2.1 million square feet that has been positioned as a future economic powerhouse for Dutchess County is now being valued at $1 billion, approximately 25% more than the previous price tag of $800 million. Known as Bellefield at Historic Hyde Park, the project would bring to the area 802 residential units and 830,000 square feet of retail and commercial space, including two hotels. The project is on a 340-acre site in Hyde Park, along Route 9, across from the Culinary Institute of America.
Approximately $50 million worth of infrastructure work has been completed at the site and above-ground construction has now begun on the first of the two hotels for the project, a $52 million Residence Inn to be known as The Inn at Bellefield by Residence Inn.
Tom Mulroy, chairman and CEO of developer T-Rex Capital Group LLC, told the Business Journal that the increased valuation for the project is due to inflation, the effects of construction delays due to Covid and changes in project components in the updated master plan for the project that was approved by the town of Hyde Park.
“Above-ground construction has begun on the first of two hotels,” Mulroy said. “Phase two will be about 300,000 square feet of commercial. It will involve 344 residential rental units and it will involve 129 condo for-sale units and 12 townhome units.”
Mulroy said that people have been showing a new interest in Dutchess County and the Hudson Valley as a result of the Covid pandemic and changes in work habits.
“This is the critical mass, 2.1 million square feet on 340 acres, that can really move the needle,” Mulroy said. “The Hudson Valley is a pretty vast piece of land. You”™ve got to remember the Hudson Valley brings in over 25 million tourists a year.”
Mulroy characterized the development as being an economic engine right along the Hudson River that will complement attractions such as the Culinary Institute, the FDR Presidential Library, Vassar, Bard and the Walkway Over the Hudson. He said the hospitality components of Bellefield would help bolster the tourism.
“Compare that to Napa Valley, California, which has less than four million visitors a year,” Mulroy said. “They have incredible hotel stock but they have four million or less a year. We have 25 million a year and our hotel stock has been behind the 8-ball. I think that will be transformational.”
Mulroy said they have talked with officials at the Franklin D. Roosevelt National Historic Site.
Mulroy said they have talked with officials at the Franklin D. Roosevelt National Historic Site.
“We”™ve been working on this project for 12 years. We really land-banked it for awhile, to try to understand it,” Mulroy said. “We spent a lot of time with the FDR people. They have a big need for hospitality facilities. A lot of people go there and they”™re daytrippers. You cannot see the FDR in one day. If you really want to take advantage of the FDR estate and what the museum has to offer that”™s at least a two-day trip. There are conferences and a lot of weddings that FDR would like to do and they”™ve been stymied, and that goes for a lot of groups up there.”
Mulroy said that those involved in the project have found it quite gratifying to see above-ground work taking place at the site.
“When we did break ground in July of 2018 we had hundreds of calls from people who wanted to put in a reservation for residences,” Mulroy said. “We have over 300 potential tenants on our lists for residential and commercial space. We”™re involved with City Winery to be one of our anchors.”
Approximately 48 acres of the site will be devoted to agricultural use with about 197 acres maintained in its natural wooded state.
The Residence Inn is expected to open in September of next year and is being developed by T-Rex in partnership with the Shaner Hotel Group LP.
“We have already closed our hotel construction financing,” Mulroy said. “We have a development loan for phase two already closed. That interest rate was put to bed a couple of months ago. The next phase is almost a million square feet. For the residential, we”™re working with our joint-venture partners and commercial leasing will be phased. There will be phase 2A and 2B depending on how leasing goes. Right now we”™re working with a couple of anchor tenants. You try to sign up your anchor tenants and you fill in the others after the anchor tenants are signed.”
Mulroy said they plan to start the site work for phase two by year end and expect above-ground construction on phase two to begin around the middle of 2023. He said that market conditions will help determine how quickly the full million square feet in phase two gets built.
“Phase two is a big lift.” Mulroy said. “This is going to be transformational, not just for Dutchess County, but for the Hudson Valley and New York. This is a sizable project.”
