Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Perhaps isn’t going to be as easy as first thought at 7 World Trade Center. The first large-scale tenant in negotiations to occupy space in the building, Beijing Vantone Real Estate Ltd., did not deliver a letter of credit on Monday, according to Silverstein Poperties, Inc., the building’s owner.

Originally, the company was to lease 200,000 sf, the top five floors of the 52-story building, for 15 years. According to a Larry Silverstein release, Monday was “the fourth time they missed an agreed deadline to post security.” Further more, Silverstein delivered a letter to Vantone’s New York rep saying, “After all of these missed deadlines, we no longer have confidence in your ability to fulfill the terms of the proposed lease transaction.”

In a statement released this afternoon, Xue Ya, executive director of the China Center, said, “Silverstein Properties unilaterally imposed deadlines to which we never agreed. We jointly signed a lease on June 30, subject only to a letter of credit. Our bank in China has had only one week to review the lease and we anticipate they will issue the letter of credit promptly. … We hope that the negative publicity generated by Silverstein today will not interfere with our abilities to secure our financing.”

A representative of CB Richard Ellis contacted by GlobeSt.com could not comment on the situation under orders of Silverstein. Industry sources put the building’s price between $50-$60 per sf.

Silverstein and Vantone chairman Feng Lun originally announced a preliminary non-binding agreement to create the China Center inbuilding, hoping it would be the centerpiece for Chinese firms looking to set up business hubs in New York.

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?



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
Live Chat

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