NEW YORK, Dec. 29, 2021 /PRNewswire/
-- The Howard Hughes Corporation® (NYSE: HHC)
today announced the final approval by the City of New York of its planned $850 million 250 Water Street development project
at the Seaport in Lower Manhattan, a key component of
HHC's long-term vision for the historic neighborhood. The
26-story mixed-use project, designed by world-renowned architecture
and urban design firm Skidmore, Owings
& Merrill (SOM), will feature residential rental apartments,
office, retail and community space. In addition to providing
affordable housing, the building, originally planned with a
market-rate component consisting of for-sale units, will now offer
market-rate residential rental units to address the high demand for
rental housing in Lower Manhattan.
The project will generate $50
million in essential funding for the South Street Seaport
Museum, a beloved New York City
cultural institution, with $40
million generated by the HHC 250 Water Street project and an
additional $10 million committed to
by the City of New York. The 250
Water Street project, which is expected to break ground in 2022,
will generate roughly $1 billion in
economic impact for the City and State and create more than 3,300
permanent and construction jobs.
HHC has also obtained approval from the City to extend the
company's ground lease for City-owned properties at the Seaport to
99 years, strengthening HHC's ability to continue to invest in and
revitalize the area and demonstrating its confidence in the
long-term future of New York
City.
"This important project will play a vital role in New York City's recovery through the creation
of a new mixed-income rental building, office space, neighborhood
infrastructure improvements, and critical funding to ensure the
long-term success of the treasured South Street Seaport Museum,"
said Saul Scherl, President of the
New York Tri-State Region for The Howard Hughes Corporation. "We
are firmly committed to a bright future for the Seaport
neighborhood, and our 250 Water Street project is at the heart of
our vision for this vital and historic part of the City."
"Throughout my tenure, I have been proud to advocate for
mixed-income housing throughout my district, especially affordable
housing in areas long out of reach for so many working families,"
said New York City Council Member Margaret Chin. "The 250 Water
Street project will not only transform an outdated parking lot
into high-quality mixed-income housing, it will also provide a
critical lifeline to one of my district's—and our city's—most
treasured cultural institutions, the South Street Seaport Museum.
The Howard Hughes Corporation is clearly committed to the Seaport
as our city recovers, and I want to thank HHC leadership for a
collaborative, productive partnership and willingness to work
hand-in-hand with the community over the last few years. This
is a project I am proud to support."
"The approval of 250 Water Street represents an important moment
in the continued revitalization of the Seaport district, and the
economic and cultural recovery of Lower Manhattan," said Manhattan
Borough President Gale A. Brewer. "I
am pleased that this will result in 70 new affordable apartments
and an endowment of sustainable funding for the South Street
Seaport Museum, a beloved organization that I have supported for
many years. Over its 54 years, the South Street Seaport Museum has
reminded us of the rich maritime history of Lower Manhattan, and I
am delighted that it will continue to link the Seaport to its
unique history as a birthplace of our city. Congratulations to the
Mayor, Councilmember Chin, and members of Community Board 1 and the
Lower Manhattan community, as well as to the teams at The Howard
Hughes Corporation and New York City Economic Development
Corporation, for supporting the preservation and growth of the
historic portion of the oldest port in our city."
Planned for the site of a full-block surface parking lot, the
324-foot-tall building will provide a much-needed gateway to the
Seaport and includes approximately 270 apartments above a
five-story base with Class A office, retail and community
space.
By following the standards and guidelines of the City's
Mandatory Inclusionary Housing program, HHC has committed that 20
percent of the residential floor area comprising at least 70 of the
26-story building's apartments will be affordable to families
earning an average of 40 percent of area median income, or roughly
$45,000 for a family of four. Based
on the current strength of the local multifamily rental market, HHC
intends to develop the building's market-rate residential units as
rental, rather than for-sale apartments as originally proposed.
The Museum has served as the area's cultural anchor since 1967,
with celebrated collections that honor New York City's maritime heritage. The Museum
has suffered significant setbacks over the last two decades,
including a two-year closure after 9/11, the 2008 financial
collapse, flooding during Superstorm Sandy, and, most recently, the
pandemic. In addition to the $40
million endowment made possible through HHC's 250 Water
Street development, the Museum will be the recipient of
$10 million of capital funding
committed to by the City to advance future Museum capital
rehabilitation projects. Building on this critical infusion of new
funding, the Museum will plan for a new state-of-the-art building
that will meet its programming needs.
In connection with the approval to extend its City lease from a
remaining 51-year term to 99 years, HHC has also committed
$9.8 million toward essential
resiliency enhancements as well as improvements to Titanic
Park, an entry point to the Seaport, together with a $3.75 million investment to expand maritime uses
by facilitating vessel docking on the east and
north sides of Pier 17.
The approval of 250 Water Street and HHC's lease extension caps
a comprehensive public review process during which HHC obtained
approvals through the City's Uniform Land Use Review Procedure,
which included review by Manhattan
Community Board 1, the Manhattan Borough President, the New
York City Planning Commission and the New York City Council.
HHC will begin a comprehensive remediation of the site through
the New York State Brownfield
Cleanup Program in 2022.
Approval of the 250 Water Street project comes as HHC is nearing
completion of the Tin Building, another significant milestone in
the revitalization of the Seaport. The historic Tin Building is
currently being refurbished and redeveloped by HHC as a marketplace
in partnership with Chef Jean-Georges
Vongerichten, set to open in spring of 2022. Together, Pier
17, the Tin Building and 250 Water Street exemplify HHC's
commitment to the rejuvenation of this important historic area of
New York City.
About The Howard Hughes Corporation®
The Howard Hughes
Corporation owns, manages and develops commercial, residential and
mixed-use real estate throughout the U.S. Its award-winning
assets include the country's preeminent portfolio of master planned
cities and communities, as well as operating properties and
development opportunities including the Seaport District in
New York; Columbia, Maryland; The Woodlands®, The
Woodlands Hills®, and Bridgeland® in the Greater Houston, Texas area; Summerlin®,
Las Vegas; Ward Village® in
Honolulu, Hawaiʻi; and
Douglas Ranch in Phoenix. The Howard Hughes Corporation's
portfolio is strategically positioned to meet and accelerate
development based on market demand, resulting in one of the
strongest real estate platforms in the country. Dedicated to
innovative placemaking, the Company is recognized for its ongoing
commitment to design excellence and to the cultural life of its
communities. The Howard Hughes Corporation is traded on the New
York Stock Exchange as HHC. For additional information
visit www.howardhughes.com.
Safe Harbor Statement
Statements made in
this press release that are not historical facts, including
statements accompanied by words such as "will," "believe,"
"expect," "enables," "realize," "plan," "intend," "assume,"
"transform" and other words of similar expression, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management's expectations, estimates, assumptions, and
projections as of the date of this release and are not guarantees
of future performance. Actual results may differ materially from
those expressed or implied in these statements. Factors that could
cause actual results to differ materially are set forth as risk
factors in The Howard Hughes Corporation's filings with the
Securities and Exchange Commission, including its Quarterly and
Annual Reports. The Howard Hughes Corporation cautions you not to
place undue reliance on the forward-looking statements contained in
this release. The Howard Hughes Corporation does not
undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events, information or
circumstances that arise after the date of this release.
Contacts:
Media
Risa Heller Communications
James Yolles, 202-997-4559
james@risaheller.com
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
Senior Vice President, Head of Corporate Communications
cristina.carlson@howardhughes.com
For HHC Investor Relations
John Saxon, 281-929-7808
Investor Relations Associate
john.saxon@howardhughes.com
Correne S. Loeffler,
281-929-7787
Chief Financial Officer
correne.loeffler@howardhughes.com
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SOURCE The Howard Hughes Corporation