Another Developer Plans Downtown Hotel

NEW YORK CITY-BCN Development CEO Craig Nassi tells GlobeSt.com that his firm is currently in the works to build a 400,000-sf hotel near the World Trade Center site. Although details are scarce at this point, with the specific site and financing information not disclosed, Nassi says it will be a five-star hotel with 200-plus condos, and groundbreaking is expected to be in early 2009.

Nassi says the hotel is expected to be complete within 36 months. He notes that “debt is at a maximum of 55% to 60% today, which makes the capital stack difficult to fill while still fulfilling your proforma.” He adds that construction costs throughout Manhattan are at a “$500-plus-per-sf to build cost, only this has to be built union which is very costly.” He expects to close within 90 days. Factoring in that $500-plus per sf, a 400,000-sf property would be approximately over $200 million, according to GlobeSt.com’s calculations, although one source put the construction cost closer to $1000. Another unidentified industry source tells GlobeSt.com that $1,000-per-buildable-sf is too high, but $500-per-sf is low. After following up with Nassi again regarding the construction costs, he again says that “hard costs are only $500-per-buildable-sf.”

Nassi says that anything near the World Trade Center is desirable because “it’s going to be the largest tourist attraction in New York City and the USA for decades to come.” He says that Costas Kondylis & Partners LLP Architects has been hired. A rendering on BCN’s website shows a proposed tower by Costas Kondylis at 111 Washington St., which is more than likely the tower’s location, although Nassi would not further confirm. Calls to Costas Kondylis were not returned by deadline.