Seaport Entertainment Group has agreed to sell the development site at 250 Water Street for $150.5 million to Tavros Capital, according to Bisnow. The sale represents a significant loss for Seaport Entertainment Group, which invested $220 million in the property and associated air rights after spinning off from Howard Hughes Holding last year in a deal supported by billionaire Bill Ackman.
SEG President and CEO Anton Nikodemus said in a statement that the sale would “support new sustainable growth opportunities and create long-term value for our shareholders.”
Howard Hughes originally purchased the site for $180 million in 2018 following unsuccessful attempts by its previous owner, the Milstein family, to obtain building approval. After acquiring the property, Howard Hughes committed to paying $40 million for 234,630 square feet of air rights from the South Street Seaport Museum and subsequently secured approval to build on the site. However, this arrangement became controversial.
In 2022, the South Street Seaport Coalition challenged the Landmarks Preservation Commission’s approval through legal action. In 2023, a judge voided that approval due to concerns about an “impermissible quid pro quo” between the developer and commission regarding the air rights deal. This decision was later reversed after about six months when an appellate court declined to hear further appeals from preservationists, enabling construction plans to move forward.
The project also benefited from an extension of the 421a construction completion deadline to 2031. This extension allows developments like this one—which includes 399 units with 100 designated as affordable—to qualify for key tax abatements necessary for financial viability (https://therealdeal.com/new-york/2022/06/03/albany-passes-421a-extension-but-no-replacement-in-sight/).
Despite overcoming these obstacles, SEG announced its intention to sell the site in March. JLL’s Andrew Scandalios, Ethan Stanton and Nicco Lupo represented SEG in this transaction, which is expected to close before year-end.
Separately, Seaport Entertainment Group recently signed a long-term lease with Meow Wolf at Pier 17 for a new immersive art exhibition space spanning 75,000 square feet (https://www.bisnow.com/new-york/news/retail/meow-wolf-signs-lease-for-first-new-york-location-at-pier-17-124014).
