Developer Sharif El-Gamal and a rendering of Park51

In a radical change of heart, developer Sharif El-Gamal has said he is exploring commercial options, including condominiums, a hotel and office tower, at the site of Park51, the proposed Islamic community center near the World Trade Center.

“All options are on the table,” he said in an interview with the Wall Street Journal. “We’re looking at all the different potential uses. We’re sitting on a very valuable piece of real estate.”

A Muslim prayer room is still part of the plan, he insisted, but the Islamic community center may actually be a small portion of the overall project, slated to be more than 120,000 square feet. [more]

When Larry Silverstein was asked to lend some of his time to be the featured guest at a B’nai B’rith real estate luncheon event held yesterday he was happy to oblige, and even agreed to pay for lunch, he told an audience of about 70 at the event in 7 World Trade Center. The developer said the organization has done extraordinary work in its more than 100 years of existence.

The animated, charasmatic and joyful impressario of Silverstein Properties stood behind a sleekly designed transparent lecturn, near 12-foot windows overlooking the development site, and talked for nearly 40 minutes about what he’s called his most important project –the redevelopment of the World Trade Center site.

He imparted two themes of New York development he’s learned in his 55-year career: Don’t bet against New York — it always comes back and strongly, and, referring to the built-on-spec 7 WTC, if you build it they will come. – Marc Becker
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Governor Cuomo and the St. Nicholas ChurchBehind closed doors, Governor Andrew Cuomo is pushing to rebuild the St. Nicholas Church at the former site of the Deutsche Bank Building, sources told the New York Post, even though it could severely delay construction of the World Trade Center site.

The Port Authority of New York & New Jersey wanted the church to be rebuilt at 155 Cedar Street, where it stood before being destroyed during the Sept. 11 attacks. Church leaders initially thought the new structure would be built one block away at 130 Liberty Street, but the Port Authority wanted to negotiate a land swap so that it could be built at the Cedar Street site. [more]

The priorities of the Port Authority of New York and New Jersey are likely to shift under its upcoming change of leadership and as the agency is undertaking a review of its  $25 billion, 10-year budget for capital projects, the Wall Street Journal reported.

Earlier this week, Christopher Ward, executive director of the Port Authority, announced that he would be resigning next month. Governor Andrew Cuomo will be leading the process to find his replacement.

“What we need to do is look at all the projects that are on the drawing board, those that are in the pipeline, those that are ready to go, those that are going and decide about priorities and timing and sequencing, and that’s part of this process,” David Samson, chairman of the Port Authority, said. “Everything is on the table.” [more]

Time Warner is moving forward with its plan to possibly move out of the Time Warner Center and consolidate its operations at new headquarters elsewhere to save costs, the Wall Street Journal reported. In a memo to all New York-based employees yesterday, the company said it would be undertaking a broad reevaluation of its real estate, with a formal plan expected next year. Time Warner moved to Columbus Circle in 2004, where it had partnered with Related Companies to build the David Childs-designed building that is its company headquarters now. Comments

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From left: Port Authority Executive Director Chris Ward, Silverstein Properties CEO Larry Silverstein and 4 World Trade Center

After a five-month effort, the Port Authority of New York & New Jersey has found a way to sell bonds financing the World Trade Center construction while appeasing existing Port Authority bondholders. According to the Wall Street Journal, without an agreement, Silverstein Properties would not have enough funding to complete construction on the 72-story 4 World Trade Center.

Port Authority had wanted to issue World Trade Center bonds. To ensure low interest rates it had intended to make the debt obligations on those bonds a priority over the general obligation bonds the agency had previously sold. [more]

Clockwise from top left: Gary Greenspan, executive vice president at Cushman & Wakefield; CB Richard Ellis Chairman Stephen Siegel; 7 WTC; Peter Turchin, executive vice president at CB Richard Ellis and Michael Burgio, executive vice president of Cushman & Wakefield Seven World Trade Center is now fully leased, according to Silverstein Properties, which signed MSCI to a 20-year lease for the final 125,000 available square feet on floors 47 through 49. MSCI, which provides investment decision support tools, is moving its world headquarters to the 52-story tower from One Chase Plaza, and will consolidate its New York City operations in the space by the middle of next year.

Gary Greenspan and Michael Burgio, executive vice presidents at Cushman & Wakefield, represented MSCI, while an internal Silverstein Properties team together with CB Richard Ellis Chairman Stephen Siegel and executive vice president Peter Turchin, also of CBRE, negotiated the lease. – Adam Fusfeld
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Travel and automotive agency AAA doesn’t want bridge and tunnel fare hikes to fund the World Trade Center development, the Associated Press reported.

The agency is pleading with the U.S. Department of Transportation to block the Port Authority of New York & New Jersey’s plans to increase toll fees by up to 50 percent on the grounds that they violate a 1987 federal law requiring bridge tolls to be “just and reasonable.”

But the agency wants to block the costly hikes because it feels transportation revenue should be used to improve transportation. [more]

Developer Edward Minskoff and a rendering of 51 Astor

Developer Edward Minskoff is preparing to break ground at 51 Astor Place, he told Real Estate Weekly, a 400,000-square-foot office tower between Third and Fourth avenues and 8th and 9th streets. Minskoff’s firm, Edward J. Minskoff Equities, will begin demolition of the building currently sitting on the site by the end of this year, REW said.
With other developers avoiding risks as the economy continues to fluctuate, Minskoff is betting that 51 Astor will attract tenants once built, saying it will be superior to Manhattan’s comparatively shabby office stock.
“It’s a state of the art building that’s going to be more technologically advanced than 98 percent of other buildings today,” Minskoff said. “Companies that want to operate their businesses efficiently and effectively realize now that they need great space to do it.” [more]

World Trade Center siteFrom the September issue: Construction crews have been working feverishly at the World Trade Center site in anticipation of the 10th anniversary of the Sept. 11 attacks later this month.

But when families and friends of the victims gather there for the commemorative ceremony and the opening of the National September 11 Memorial, they will also see major progress at many of the buildings around them.

Indeed, lately — after years of delays and political infighting — steel has been rising rapidly at the 16-acre site.

Just to the north of the memorial, attendees will see the new $3.2 billion 1 World Trade Center, the most expensive office building ever constructed in the city, built to about the 80th floor. To the east, they will see the construction at three additional tower sites.

While much has been written about the progress at ground zero in a piecemeal fashion, this month, The Real Deal takes a closer at look how all of the pieces fit together — and how the finances pencil out for the developers. [more]