The Real Deal New York

RXR Realty enters joint venture to bring offices to Pier 57

Developer Youngwoo & Associates still plans to create affordable retail space on ground level

September 17, 2014 12:55PM

From left: Scott Rechler, Pier 57 rendering and Young Woo

From left: Scott Rechler, Pier 57 rendering and Young Woo

Scott Rechler’s RXR Realty has entered a joint venture with Youngwoo & Associates to operate offices at Pier 57, the West Side development originally conceived as a shopping complex dubbed SuperPier.

RXR will convert 200,000 to 300,000 square feet of space on the pier into offices, Crain’s reported. Youngwoo & Associates will move forward with plans to transform ground-level shipping containers into affordable retail units and finalize preliminary deals with anchor tenants, according to the news site.

Rechler told Crain’s that the success of the Starret-Lehigh Building at 601 West 26th Street, which RXR purchased in 2011 for almost $1 billion and is 98-percent leased, encouraged him to look for new office opportunities in the area.

The financial terms of the deal were not disclosed, but Rechler tacked on an additional $150 million to Youngwoo’s original estimate for the total cost of conversion, putting the price at $350 million, according to the news site.

The Hudson River Park Trust, which controls the pier, approved the joint venture, according to Crain’s. Reports of a deal broke earlier this year. [Crain’s]Tom DiChristopher

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