The Real Deal New York

Howard Hughes Corp. finalizes $390M development site sale to Chinese firm

The transaction depended on the transfer of 303,113 square feet in air rights

March 17, 2016 04:35PM

From left: Lu Zhiqiang and a diagram of the planned 80 South Street (credit: Oceanwide Holdings)

From left: Lu Zhiqiang and a diagram of the planned 80 South Street (credit: Oceanwide Holdings)

After securing hundreds of thousands of additional development rights, the Howard Hughes Corp. has finalized its sale of 80 South Street to China Oceanwide Holdings.

The deal, initially announced in August, was contingent on Howard Hughes transferring an additional 303,113 square feet in air rights — after already securing 104,167 square feet — to the site, according to the sale agreement. The Chinese firm paid $390 million for the site, according to a statement released by Howard Hughes on Thursday. The Commercial Observer broke news of the sale on Wednesday. The City Planning Commission approved the air rights transfer in February, bringing the site’s development potential to 817,784 square feet and clearing the way for the two parties to finalize the sale.

The building is expected to be 1,436 feet and 113 stories, according to documents filed with the planning commission. The building would contain 441,077 square feet of residential space and 376,707 square feet for hotel, office or retail use.

Howard Hughes, which is redeveloping the South Street Seaport, bought the property in 2014 for $100 million and a parcel at 173 Front Street for $24 million in 2015. — Kathryn Brenzel

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