NEW YORK CITY—At the ripe, young-at-heart age of nearly 84 years old, most of us likely would be focused on retirement. But Larry Silverstein, chairman of Silverstein Properties, is focused on the bright future he sees for commercial real estate in New York City and, in particular, for Lower Manhattan.
“The city never has been better than it is today and I venture to say it's going to continue to stay strong,” the executive best known for building and then rebuilding the World Trade Center told a roomful of industry executives during the Young Men's/Women's Real Estate Association of New York monthly luncheon Tuesday in Midtown.
Downtown Manhattan, he continued, “is being transposed, it's totally different from what it was a few years ago. When you look at the World Trade Center and how it contributes to Lower Manhattan, the new PATH-train terminal, the retail and more, it's a new vision of how to re-create a part of the city that, candidly, needed recreation.”
Also mentioning projects being created by other companies and the city in the lower reaches of Manhattan—like Brookfield Office Properties' Brookfield Place; Westfield Corp.'s effort, which is slated to create a 465,000-square-foot retail complex at World Trade Center; the 14 or so hotels under construction in the area and the Fulton Street Transportation Hub, which will feature 65,000 square feet of retail space—Silverstein said of the development: “It's going to be quite spectacular.”
He spoke too of the success already had by the new World Trade Center. “Four World Trade Center is a model of technology and sustainability. MediaMath and global technology companies already have leased space and there's more to come. As these leases are signed and tenants move in, you'll see how the building transform into something living and breathing.”
Of Three World Trade Center, Silverstein said, “When we were building we began wondering who'd occupy the trading floors in the base of Two and Three World Trade Center. As it turns out, it's a media company occupying the entire floor in Three World Trade Center because the company is after putting as many seats in the space as possible, plus all of the technology the company will need is in place. It also has fresh air and light so the environment is perfect for their use.”
“It cost nearly $3 billion to finance the building,” he noted, adding, “So we went to the bond market, marketed over $1.6 million of 40-year bonds, for both construction loan and permanent financing, at an all-in cost of 5.3%.”
He contended, “When you stop to think about it, that's one hell of an accomplishment. And that's just the beginning of it,” he noted. “There's more to come—it's pretty damn exciting.”
So how does Silverstein maintain his exuberance? Experience and a deep faith in New York City give Silverstein his unending optimism.
“I've been in business for 55 or 60 years [he lost count]. We've been through the dot.com crash, 9/11, the financial meltdown of 2008, Superstorm Sandy and more. When you've been through all of this, you come away feeling that you should never bet against New York because it's fantastic; it always comes back. My money is on the city of New York.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
