Seaport Entertainment Group has agreed to sell the development site at 250 Water Street for $150.5 million to Tavros Capital, according to Bisnow. The transaction represents a significant loss for Seaport Entertainment Group, which had invested $220 million in acquiring the property and associated air rights.
SEG President and CEO Anton Nikodemus stated, “the sale would ‘support new sustainable growth opportunities and create long-term value for our shareholders.’”
The site has a complicated history. Howard Hughes acquired it in 2018 for $180 million after previous owner, the Milstein family, was unable to secure building approval. Howard Hughes then committed an additional $40 million for air rights from the South Street Seaport Museum, leading to initial building approval.
Legal disputes followed when the South Street Seaport Coalition challenged the Landmarks Preservation Commission’s decision in 2022. In 2023, a judge initially voided the commission’s approval, calling the air rights arrangement an “impermissible quid pro quo” between the developer and city officials. About six months later, this ruling was reversed and an appeal from preservationists was declined by the court, allowing construction plans to proceed.
The project’s financial outlook improved when lawmakers extended the 421a construction completion deadline to 2031. This extension allowed developers to access tax abatements necessary for their plans, which included 399 residential units with 100 designated as affordable housing.
Despite overcoming these obstacles, SEG announced its intent to sell the site earlier this year. JLL’s Andrew Scandalios, Ethan Stanton and Nicco Lupo represented SEG in arranging this deal, which is expected to close before year-end.
In another nearby project, Seaport Entertainment Group recently secured a long-term lease with Meow Wolf at Pier 17 for immersive art exhibitions spanning 75,000 square feet over two decades.
