Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY–Monday’s the day closing talks begin on the 99-year lease of the World Trade Center. A joint venture between Silverstein Properties and Westfield Properties outmaneuvered such names as Vornado Realty Trust and Boston Properties to land the trophy property at a price tag of $3.22 billion.

Sources close to the deal tell GlobeSt.com that the process actually involves five separate closings, one for each LLC created by the joint venture to run the properties. So, in effect, closing talks will be held between the Port Authority of New York and New Jersey and One World Trade Center LLC; Two World Trade Center LLC; Four World Trade Center LLC; Five World Trade Center LLC; and Westfield WTC LLC, which is in charge of the retail.

“The parent company charges back these LLCs to run those properties and so is guaranteed income from the operation,” our source explains. Despite the complexity of the deal, the closings are expected to be complete this Thursday.

Then begins a prolonged transition period, our source explains. Roughly 50 Port Authority staffers will be on hand for 90 days to guide new ownership through the daily hassle of running the massive real estate. “At the end of that period, there will be a decision about who from the transition team will remain with Silverstein and who will go back to the Port Authority,” he reveals. Spokespeople for Silverstein had no comment about any of the closing’s details.

As one of the biggest deals in New York City real estate history winds down it closes a months-long, often nail-biting series of events that saw major industry players shouldering each other out in attempts to claim the master lease to the World Trade Center. Through it all, the bids were so close that Port Authority officials told GlobeSt.com that it was “never about the money.”

Vornado was the first hopeful to be selected from the crowd with a bid of $3.25 billion. The firm’s 20-day exclusive negotiation period broke down at the 11th hour and GlobeSt.com broke the story that the Silverstein JV was chosen to step in.

But according to reports, the sailing wasn’t always smooth in these talks either, and there was some concern that the new candidates wouldn’t be able to raise sufficient funds. In an exclusive interview, one source told GlobeSt.com that financing was never a problem and that “as far as we are concerned, the deal was a go all the way through.”

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.