Two developers — Westbrook Partners and Atlas Capital Group — recently announced an agreement to pay $100 million to acquire 200,000 square feet of air rights over Pier 40 for a proposed mixed-use development. The amount is 33% above the valuation of the air rights. The air rights were valued at $75 million, based on an appraisal commissioned by the owner, Hudson River Park Trust.
According to an online Crain’s New York article, the two developers are looking to buy the air rights as part of their design plans for St. John’s Terminal, a three-block-long building located across the street from the pier from Washington Street to West Street. Westbrook has owned the property for several years and has leased it out as office space.
As part of the project, called St. John’s Center, both developers are seeking to rezone the property to permit up to 1 million square feet of market-rate residential development, 300,000 square feet of affordable and senior housing and another 400,000 square feet of commercial space, which would feature a mix of retail, offices and a hotel.
The project would need to undergo a public review process. The air rights purchase is dependent upon the rezoning approval.
If you are a developer or business owner and have questions regarding a commercial real estate transaction, land use approvals or commercial real estate financing, it is important to contact a law firm experienced in these matters. Contact Blodnick, Fazio & Associates, P.C. at (516) 280-7105.