Howard Hughes Company’s spinoff of the Seaport to shareholders final summer season probably portends a change of route for the South Avenue-area leisure, eating and buying advanced, downtown sources stated — and put a query mark over its helpful however again-stalled growth website.
As reported in The Submit on Friday, the Seaport’s new owner-operators, Seaport Leisure Group (SEG), signed hospitality firm Grupo Gitano to a virtually 14,000 square-foot lease on Pier 17, the place it’s going to change the Pearl Alley bar-lounge advanced by late February or early March.
However the largest subject at the Seaport — a posh of principally historic buildings centered round South Avenue and Fulton Avenue with 470,000 sq. ft of retail, eating and leisure makes use of — entails 250 Water Avenue, the one-acre website subsequent door that’s empty eight years after HHC purchased the land for $180 million.
HHC’s plan for a mixed-use venture of flats, shops and public house was stalled by years of lawsuits.
HHC lastly bought the inexperienced mild from the state’s highest courtroom final Might, and appeared poised to construct an $850 million, 27-story advanced with 399 flats above a five-story base with places of work, shops and neighborhood house.
However by then, it had determined to spin off the Seaport, together with the empty lot, into a brand new entity, SEG. (Invoice Ackman’s Pershing Sq. has massive investments in each corporations.) And the destiny of 250 Water Avenue seems in flux. There’s no signal of building six months because the spinoff.
A downtown analyst stated, “Even though the site is fully entitled for the project, SEG might need help. They’re either looking for a development partner or for a developer to buy it outright.”
SEG senior vp Ellie Chamberland would solely say, “We anticipate additional announcements regarding the future of 250 Water Street in the coming months.”
In the meantime, the two-level, tropical-themed Gitano restaurant and membership would be the model’s US flagship. It has resorts in Tulum, Mexico, and Dubai, and operates a well-liked pop-up right here on Governors Island.
Though Chamberland strongly denied that SEG was shifting the emphasis from locals to vacationers, a jungle-themed eatery “with the laid-back luxury of the Yucatan,” as SEG founder James Gardner known as it, might need a special enchantment than pier eating places run by native heroes Jean-Georges Vongerichten (The Fulton) and Andrew Carmellini (Carne Mare).
Some steps taken by SEG counsel continuity. It prolonged Reside Nation’s rooftop programming settlement for 5 years and made the music venue a year-round affair with a glass enclosure. It additionally fashioned a more in-depth relationship with Vongerichten’s restaurant firm, of which it owns 25%, to function the Seaport’s meals operations.
However SEG stated the pier nonetheless has 100,000 sq. ft of unleased house (previous to the Gitano lease).
Chamberland stated, “Our goal is to make the Seaport an entertainment and hospitality destination by providing unique experiences that go beyond dining and will be embraced by locals. We are exploring concepts including experiential retail, immersive art experiences, new-to-market concepts, and beloved New York City brands.”
She added, “Our strategy for Pier 17 differs from HHC in that they were focused on leasing office space in the pier [which has ESPN studios and 21,000 square feet of Nike space.] SEG is instead looking to bring additional entertainment and hospitality concepts to the pier to complement the existing offerings.”
SEG’s plans could be clouded by the Tin Constructing scenario. Again in 2022, when the 40,000 square-foot, Vongerichten-branded meals corridor opened, we wrote, “Its success is crucial to Hughes’ future fortunes at the Seaport,” which HHC held onto when it bought off $2 billion in non-core property in 2019.
However Gothamist reported final week that the $200 million Tin Constructing had “struggled” with losses and it simply laid off 100 kitchen employees after “a surprise identity check.”
A supply stated the firings had been unrelated to economics however needed to do with immigration-status points.
She added, “Our strategy for Pier 17 differs from HHC in that they were focused on leasing office space at the Pier. SEG is instead looking to bring additional entertainment and hospitality concepts to the pier to complement the existing offerings.”
HHC had leased house to ESPN studios and 21,000 sq. ft to Nike.
SEG’s plans could be clouded by the Tin Constructing scenario. Again in 2022, when the 40,000 square-foot, Vongerichten-branded meals corridor opened, Realty Test wrote, “Its success is crucial to Hughes’ future fortunes at the Seaport,” which HHC held onto when it bought off $2 billion in non-core property in 2019.
However Gothamist reported final week that the $200 million Tin Constructing has “struggled” with losses and it simply laid off 100 kitchen employees after “a surprise identity check.”
Daniel Boulud’s new steakhouse Tete D’Or will quickly have much more mouths to feed.
IBM signed a 92,663 square-foot enlargement lease at SL Inexperienced’s One Madison Avenue, the restaurant’s residence, publicly traded SLG reported final week. The deal brings IBM’s footprint there to 372,000 sq. ft, and brings the redeveloped landmark at Madison and East twenty third Avenue to 72% leased barely a 12 months because it opened.
SL Inexperienced reported robust 2024 workplace leasing general throughout its 24 million square-foot Manhattan portfolio, with 188 offers masking greater than 3.6 million sq. ft.
