Brookfield, Silverstein Tapped to Develop New WTC Residential Tower
It is hoped that the new project could spur new development in Lower Manhattan
The Port Authority of New York and New Jersey Board of Commissioners and the Lower Manhattan Development Corporation Board have selected a partnership led by Brookfield Properties and Silverstein Properties to enter into exclusive negotiations to develop a residential tower at the World Trade Center.
The proposal for the mixed-use building includes 1.2 million square feet of residential space or 1,325 residential rental units, of which 330 would be affordable. There will also be 190,000 square feet of office space.
The 33,000 square foot lot’s location—directly south of Liberty Park and accessible from more than a dozen subway lines and the PATH train system-could spur new development in Lower Manhattan. One sign this is already happening: Construction resumed in late May on the Ronald O. Perelman Performing Arts Center which is projected to open in 2023.
The new tower’s site was previously home to the Deutsche Bank Building, which was extensively damaged in the 2001 World Trade Center attack. LMDC, a subsidiary of Empire State Development, purchased the site in 2004 and completed deconstruction, abatement and excavation in 2011—work which was funded by a US Department of Housing and Urban Development grant.
In June 2019, Governor Cuomo announced an RFP issued jointly by the Port Authority and LMDC seeking a development team to lease or purchase and redevelop the site with a commercial or mixed-use project. The partnership for the winning proposal also includes Omni New York and Dabar Development Partners. The Port Authority Board of Commissioners will consider approval of a finalized lease within 6 months.
Savills’ Capital Markets Group served as the financial advisor to the Port Authority.