A property with a tumultuous history will be selling at a more than 16 percent loss, as Manhattan\u2019s 250 Water Street<\/b> will change hands for $150.5 million seven years after going for $180 million.<\/p>\n
Seaport Entertainment Group<\/a><\/b> (SEG) announced<\/a> that it has entered an agreement to sell the mixed-use project to the real estate investment management and development firm Tavros<\/a><\/b>.\u00a0<\/p>\n SEE ALSO: Hotel That Hosted Dylan and the Stones Sells for $23M<\/a><\/p>\n Howard Hughes Corporation<\/a><\/b> (HHC) bought the full-block, one-acre property in 2018 for $180 million<\/a>, and then acquired the property\u2019s air rights for $40 million<\/a> in 2024. No word on whether the air rights were included in the current transaction. Tavros declined to comment on the sale.<\/p>\n Facing intense community opposition for the project\u2019s potential effect on neighborhood character, HHC spent three years attempting to secure approval from the New York City Landmarks Preservation Commission<\/b> (LPC) to construct a 25-story tower before finally securing initial permission<\/a> in May 2021. The planned tower was to be 540,000 square feet with 270 residential units, including 70 affordable, and was to be designed by Skidmore<\/a>, Owings & Merrill<\/a><\/b> (SOM), according to reporting at the time by Commercial Observer.<\/p>\n But a judge ultimately overturned the LPC\u2019s determination, and the project remained in legal limbo until May 2024, when the New York State Court of Appeals<\/b> rejected a motion from local groups<\/a> calling for the denial of the LPC approval.<\/p>\n This all became somewhat moot two months later, when HHC split into two companies<\/a>, with responsibility for 250 Water Street falling to the newly christened SEG. The other new company in the split, known as Howard Hughes Holdings<\/a><\/b> (HHH), paid off a loan for 250 Water Street of about $51 million, according to reporting in CO.<\/p>\n The property is currently entitled for the construction of a 26-story, mixed-use building with up to 399 residential units and around 200,000 square feet of commercial retail and community space, according to the SEG announcement.<\/p>\n \u201cWe believe the anticipated sale of 250 Water Street marks a significant milestone for Seaport Entertainment Group, unlocking capital that is poised to enhance our balance sheet, support new sustainable growth opportunities, and create long-term value for our shareholders,\u201d Anton Nikodemus<\/b>, chairman, president and CEO of SEG, said in the statement. \u201cWe are confident that Tavros, an experienced and engaged New York City developer, is well-positioned to bring this project to life in a way that respects the character of the neighborhood and contributes positively to the community.\u201d<\/p>\n The agreement includes a non-refundable $6 million deposit, as well as provisions that could raise that amount to $8.5 million and the sale price to $152 million before closing, according to SEG. The deal is expected to close before year\u2019s end.\u00a0<\/p>\n A JLL<\/a><\/b> team led by Andrew Scandalios<\/b>, Ethan Stanton<\/b> and Nicco Lupo<\/b> represented SEG. No word on who represented Tavros.<\/p>\n Tavros has been busy in New York City of late. Earlier this month, it broke ground<\/a> on a 55-story Long Island City, Queens, condominium tower encompassing the properties at 24-19 Jackson Avenue<\/b> and 45-03 23rd Street<\/b> in the neighborhood\u2019s Court Square<\/b> area that it\u2019s developing with Incoco Capital<\/a> <\/b>and Charney Companies<\/a><\/b>.<\/p>\n In May of this year, Tavros and Charney secured $145 million in financing<\/a> for 175 Third Street<\/b> in Brooklyn, set to be the largest building in the borough\u2019s Gowanus neighborhood at around 1 million square feet and 1,000 residences. 175 Third Street will be the fourth building in the two companies\u2019 2 million-square-foot, 2,200-residence Gowanus Wharf <\/b>campus.<\/p>\n