The Howard Hughes Corporation’s filing of Seaport with shareholders last summer likely heralds a change in direction for the entertainment, dining and shopping complex in the South Street area, downtown sources said — and puts a question mark over its site. valid but stuck again.
As reported in The Post on Friday, the Seaport’s new owner-operators, Seaport Entertainment Group (SEG), signed hospitality company Grupo Gitano to a nearly 14,000-square-foot lease at Pier 17, where it will replace the bar- Pearl Alley lounges. from the end of February or the beginning of March.
But the biggest problem at the Seaport — a complex of mostly historic buildings centered around South Street and Fulton Street with 470,000 square feet of retail, dining and entertainment uses — involves 250 Water Street, the adjacent one-acre site that is vacant eight years later HHC bought the land for $180 million.
HHC’s plan for a mixed-use project of apartments, shops and public spaces was stalled by years of lawsuits.
HHC finally got the green light from the state’s highest court last May and appeared ready to build a 27-story, $850 million complex with 399 apartments over a five-story base of offices, shops and community spaces.
But by then, it had decided to spin off the Seaport, including the empty lot, into a new entity, SEG. (Bill Ackman’s Pershing Square has major investments in both companies.) And the fate of 250 Water Street appears to be in flux. There is no sign of construction six months since the spinoff.
A downtown analyst said, “Even though the site is completely right for the project, SEG may need some help. They’re either looking for a development partner or a developer to buy it outright.”
SEG senior vice president Ellie Chamberland would only say, “We anticipate additional announcements regarding the future of 250 Water Street in the coming months.”
Meanwhile, the tropical-themed two-level Gitano restaurant and club will be the brand’s US flagship. It has resorts in Tulum, Mexico and Dubai, and operates a popular pop-up here on Governors Island.
Although Chamberland vehemently denied that SEG was shifting the emphasis from locals to tourists, a jungle-themed restaurant “with the laid-back luxury of the Yucatan,” as SEG founder James Gardner called it, could have a different appeal than pier restaurants. directed by local heroes Jean-Georges Vongerichten (The Fulton) and Andrew Carmellini (Carne Mare).
Several steps taken by SEG suggest continuity. He extended Live Nation’s rooftop programming deal for five years and made the music venue a year-round affair with a glass enclosure. It also forged a closer relationship with Vongerichten’s restaurant company, of which it owns 25%, to operate the Seaport’s food operations.
But SEG said the pier still has 100,000 square feet of unleased space (before Gitano’s lease).
Chamberland said: “Our goal is to make Seaport an entertainment and hospitality destination by offering unique experiences that go beyond dining and will be embraced by locals. We are exploring concepts including retail, immersive art experiences, new concepts in the market and beloved brands of New York City.”
She added, “Our strategy for Pier 17 differs from HHC in that they were focused on leasing office space on 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 existing offerings.
SEG’s plans may be clouded by the Tin Building situation. In 2022, when the 40,000-square-foot, Vongerichten-branded food hall opened, we wrote, “Its success is critical to Hughes’ future fortune in Seaport,” which HHC retained when it sold $2 billion no -essential. assets in 2019.
But Gothamist reported last week that the $200 million tin building had been “struggling” with losses and had just laid off 100 kitchen workers after “an unexpected identity check.”
A source said the firings were unrelated to the economy, but related to immigration status issues.
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 offerings existing.
HHC had leased space to ESPN studios and 21,000 square feet to Nike.
SEG’s plans may be clouded by the Tin Building situation. In 2022, when the 40,000-square-foot, Vongerichten-branded food hall opened, Realty Check wrote, “Its success is critical to Hughes’ future Seaport fortune,” which HHC retained when it sold $2 billion to the . core assets in 2019.
But Gothamist reported last week that the $200 million establishment has been “struggling” with losses, and it just laid off 100 kitchen workers after “an unexpected identity check.”
Daniel Boulud’s new steakhouse, Tete D’Or, will soon have even more mouths to feed.
IBM signed a 92,663-square-foot expansion lease at SL Green’s One Madison Avenue, home of the restaurant, publicly traded SLG reported last week. The deal brings IBM’s footprint there to 372,000 square feet and brings the redeveloped landmark at Madison and East 23rd Street to 72% leased barely a year since opening.
SL Green reported strong office leasing for 2024 overall across its 24 million square foot Manhattan portfolio, with 188 deals covering more than 3.6 million square feet.
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Image Source : nypost.com