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In March, The Related Companies unveiled MiMA, a 63-story residential building with several differences. The tower, on West 42nd Street, comprises 151 condos, 500 rental units and a 669-room hotel--not to mention a performing arts theater designed by Frank Gehry.
Why is Related packing so much under one roof?
"We hedged our investment, so that it doesn't have too many for-sale units for the market to absorb," explained Executive Vice President Bruce Beal Jr.
In this fragile economy, a growing number of developers are of the same mind. Fearing that it might take years to sell a whole tower's worth of condos, they are generating cash with rental units; some are also incorporating a hotel into projects. Additionally, increasing revenue sources makes lining up construction loans easier.
While such multiuse properties have been in Manhattan for years, they are becoming more prevalent.
"Mixed-use buildings limit some of your risk," said Evan Stein, president of J.D. Carlisle Development Corp. It built The Beatrice, a Chelsea complex that comprises an Eventi hotel and 301 luxury rental units, in 2010 and is...