But before Beacon took interest in the site, developer Tribeca Associates LLC proposed a mixed-use project on the property in 2007, which included a 171-key luxury boutique hotel, Pizer says. After the construction stalled, Trinity took the site back to protect and seal the existing structure in 2010.

“Since that time, there was a lot of hotel development in Hudson Square, and I just think another hotel at right this point would probably be a bit of over-saturation at the moment,” Pizer says. Hotels here include a Courtyard by Marriott at 181 Varick Street, Trump Hotel at 246 Spring Street, Sheraton Four Points at 66 Charlton Street and Hampton Inn at 54 Watts Street. “Everything took a dip and things slowed down,” he adds. “A lot of hotels have been built since then just on that particular block. I don’t think the over-saturation is a permanent adjective, but in other two or three years, it might be a different story.”

Now, the proposed redevelopment would have the capacity to add approximately 1,200 new workers to the neighborhood. Though unavailable for additional comment, Alan Leventhal, chairman and CEO of Beacon Capital Partners, says in a statement, “We are pleased to have established a relationship with Trinity Real Estate for the redevelopment of this exciting project.”

With more than six million square feet in its portfolio, Trinity Wall Street is one of Manhattan’s largest and oldest commercial property owners. Richard Berzine of Richard Berzine & Company, Ltd. introduced the parties and initiated the 99-year Trinity-Beacon ground lease. The legal team of Chris Smith and Peter Strauss from Sherman & Sterling LLP represented Trinity Real Estate while Steven Alden of Debevoise & Plimpton LLP represented Beacon Capital Partners.