The Dermot Company scrapped plans to construct a 500,000-square-foot residential tower at Hudson Yards after signing a contract in June to pay up to $175 million for the site.
The Port Authority of New York & New Jersey selected Dermot to develop the 25,000-square-foot site at West 33rd Street and Dyer Avenue in a February auction. Dermot bid $115 million at the time, as The Real Deal reported. Extra development rights cost about $60 million.
The tower would have had to cantilever over part of Dyer Avenue, making the project even more costly than expected, sources told Crain’s. Dermot was among 11 developers to respond to a Request for Proposal issued by the Port Authority for purchase and development, but it is unknown if the agency will move forward with another one. The Port Authority has owned the land since 1952. [Crain’s] — Mark Maurer