RXR floats idea of cruise-ship hotel at SuperPier

Pier 57 sits atop "sunken concrete box"

TRD New York /
Feb.February 26, 2015 12:35 PM

The New York-New Jersey Super Bowl had an ocean-liner hotel, so why shouldn’t the SuperPier?

Scott Rechler’s RXR Realty, which joined Youngwoo & Associates last year in a joint venture to redevelop Pier 57 on the Hudson River, is floating the idea of docking an out-of-commission cruise liner next to the structure to use as a hotel.

“We’re looking at bring a ship, one of the large retired ocean liners to potentially create a hotel facility next to it,” Michael Maturo, president of RXR, said this morning during a roundtable discussion on best practices for structuring partnerships.

During the Superbowl XLVIII, Anheuser-Busch InBev docked a 4,000-passenger Norwegian Cruise Line ship further up the Hudson River at Pier 88 as a Bud Light-branded hotel and entertainment venue.

Maturo added that the pier, which the development partners are converting to 200,000 to 300,000 square feet of office space, doesn’t sit atop wooden piles, but instead rests on a sunken, concrete caisson.

“It’s a giant concrete box that’s in the water, and actually when you’re down in it you can hear the water moving around,” he said.

Developers and investors on the panel, hosted by accounting shop EisnerAmper and law firm BakerHostetler at the latter’s Rockefeller Center office, discussed the different ways they attract and work with foreign partners.

“[Chinese partners]  are really diving in more so than just writing checks, which is I think what we see more with Canadian, European [and] South American investors which are more focused on governance rights than being co-development partners,” said Joseph McMillan, CEO of DDG, which is developing one of the tallest buildings on the Upper East Side, the 521-foot 180 East 88th Street.

The upside of this hands-on approach, he added, is that “you have a partner with a lot of capability for the next five years, but five years on what they really want is to be able to do it without you. If you go that route, that’s the cost of doing business.”

Todd Bassen, director of investment at Invesco, said having boots on the ground in Asia helps direct capital both ways.

“We have domestic clients that want to take advantage of what’s going on in Asia,” he said. “We actually have capital that’s going the other way as well.”

RXR’s Maturo said the company markets itself as an operator that can provide access to the US through its capital funds.

“Over the past number of years we’ve been able to attract capital by saying if you invest a little bit in our fund … we’ll give you kind of a cherry-pick opportunity to co-invest with us in deals that we’re doing,” he said. “It’s been very effective.” RXR recently agreed to sell a 50 percent stake in six New York-area office buildings to the Blackstone Group.


Related Articles

arrow_forward_ios
Airbnb’s Brian Chesky, RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Credit: Rechler by Eugene Gologursky/Getty Images, 75 Rockefeller)

Airbnb and RXR nix resi conversion deal at 75 Rock

Airbnb and RXR nix resi conversion deal at 75 Rock
RXR Realty's Scott Rechler and 2413 Third Avenue in the Bronx (Credit: Getty Images; Google Maps)

RXR planning 200-unit South Bronx project

RXR planning 200-unit South Bronx project
James Whelan, Scott Rechler and Jonathan Gray (Credit: Rechler by Eugene Gologursky/Getty Images; Whelan by Axel Dupeux; Gray by Drew Angerer/Getty Images; CDC)

With New York in crisis, real estate pitches in

With New York in crisis, real estate pitches in
A photo illustration of Scott Rechler and the SS United States (Credit: Eugene Gologursky/Getty Images for National Eating Disorder Association, Brian W. Schaller via Wikipedia)

RXR is looking for space…to park a $500M ocean liner

RXR is looking for space…to park a $500M ocean liner
Colony Capital's Tom Barrack and RXR Realty's Scott Rechler (Credit: Getty Images)

Colony Capital sells stake in RXR Realty

Colony Capital sells stake in RXR Realty
Larkin Plaza (Credit: Rendering courtesy of SLCE Architects)

RXR project among developments caught up in alleged Gambino mob scheme

RXR project among developments caught up in alleged Gambino mob scheme
Scott Rechler and clockwise from top left: 2455-2457 Third Avenue, 150 West 48th Street and 42-11 9th Street (Credit: Google Maps, Getty Images)

RXR’s Long Island City development was the biggest new project filed in December

RXR’s Long Island City development was the biggest new project filed in December
RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives

RXR plans 21-story LIC office building with manufacturing incentives
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...