The Real Deal New York

Westbrook seeks partner to help redevelop St. John’s Terminal

Investor would pitch in for purchase of 200K sf of air rights

September 16, 2016 06:00PM

Remderings of Saint John's Terminal at 550 Washington Street (Credit: COOKFOX)

Renderings of Saint John’s Terminal at 550 Washington Street (Credit: COOKFOX)

Westbrook Partners is looking for a developer to provide $100 million to help convert the St. John’s Terminal into a 1.7 million-square-foot office-and-residential complex.

The investment firm, which is the majority owner of the terminal at 550 Washington Street, needs a partner to help buy 200,000 square feet of air rights from nearby Pier 40 for $100 million, Crain’s reported. Westbrook is seeking to rezone its property, so that it can demolish the existing four-story building on the site and construct a five-building complex.

Eastdil Secured’s TRData LogoTINY Adam Spies is handling the search on behalf of Westbrook.

Westbrook struck a deal with the city to buy the air rights last year, and the proceeds from the sale will be used to repair Pier 40.

In 2013, Westbrook bought out Eugene Grant’s majority stake in the building for $250 million, and then acquired Fortress Investments Group’s stake for $200 million last year. Atlas Capital Group is a minority owner in the building.

Westbrook has a potential fallback plan if the rezoning doesn’t pan out or if the residential market becomes too soft. The company may opt to build roughly 1.3 million square feet of office space instead. [Crain’s]Kathryn Brenzel