NEW YORK CITY—Gaining RXR Realty as a joint venture partner,developer Youngwoo & Associates—the company that won the rightto redevelop Pier 57 into a retail and events hub along 12thavenue—has reached a deal to build more of the complex asoffice space, according to Crain's New York Business. RXRplans to convert 200,000 to 300,000 square feet of the pier spaceto office use, allowing it to jump on the increased interest in thearea on the part of tenants.

|

"Being right out on the Hudson River, it is among the mostunique spaces in the city and exactly the kind of environment, withopen layouts, high ceilings, amenities and public space, wheretenants want to be," says Scott Rechler, RXR's chief executive.

|

Rechler's interest in the pier stems in part from his successwith the Starrett-Lehigh Building, a nearby 2.3 million-square-footoffice building that RXR purchased in 2011 for nearly $1billion.

|

"At Starrett we're 98% occupied, our rents have doubled, and ourbiggest challenge is that we don't have enough space for tenantswho want to be there," he asserts.

|

RXR will oversee building and leasing the office component ofthe project while Youngwoo & Associates will focus on itsoriginal vision of building a retail mall on the ground floor ofthe pier. As part of that plan, Youngwoo will install shippingcontainers in the space that will be repurposed as low-cost boothsfor retailers, an arrangement that it said will create a home fortenants who might not otherwise be able to lease traditional retailspace, and create a unique mix of shops.

|

Seth Pinsky, an executive at RXR Realty who helped arrange thepartnership, adds that having traffic from office tenants to thepier will help energize its retail spaces. Conversely, officetenants would be drawn to the location by the thriving retail, hepredicts. "The two components help activate each other. The goalhere is to attract the kinds of creative businesses that havebecome such drivers of the city's economy."

|

Neither Youngwoo nor RXR Realty would discuss the financialterms of the partnership. But Rechler estimates the conversion ofthe derelict pier would cost $350 million, about $150 million morethan Youngwoo's initial estimate.

|

For more about this deal, see Crain's New York Business.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.