Can Steve Witkoff save the Battery Maritime hotel?

Lenders talk to developer about kick-starting stalled project

TRD New York /
Aug.August 19, 2016 09:01 AM

Steve Witkoff, white knight?

Lenders on the stalled Battery Maritime hotel have reached out to the Witkoff Group TRData LogoTINY founder to join the project and, hopefully, rescue it from further delays. Earlier this year, the Dermot Company was removed from the project when it was unable to secure enough capital to compete construction.

After failed negotiations with Connecticut-based Stonleigh Capital to take the helm, the lenders — known as the New York City Waterfront Development Fund — are trying to kickstart the project, the New York Post reported.

Plans for the landmarked Battery Maritime building include a 70-room luxury hotel with a rooftop and restaurant. The city’s been looking to develop the building since the 1980s, and finally signed a 99-year lease in 2012 with developers led by current and former Dermot Company executives.

But last year, the project hit a major roadblock when construction costs ballooned to at least $125 million as a result of changes in the federal historic tax-credit program, as well as an abatement needed after Superstorm Sandy. The developers were also seeking $77 million from EB-5 investors.

A spokesperson for the Economic Development Corp., said so far no changes have been made. “Until such time as a new partner comes in to complete the development, there is still an existing [lease] between EDC, the original development team and their lenders,” the spokesperson said. [NYP]E.B. Solomont

Related Articles

Steve Witkoff and the property at 2805 Lake Avenue

Developer Steve Witkoff revealed as buyer of Sunset Islands home

10 Madison Square West (Credit: StreetEasy, iStock)

Lawsuit: Pet Smart’s animal excrement is stinking up this $11K-a-month apartment

Douglas Elliman's Howard Lorber, Fisher Brothers' Winston Fisher, and Steve Witkoff with 111 Murray (Credit: Getty Images)

Developers of 111 Murray “chilled” buyers into closing: lawsuit

Manhattan hotel at center of 1MDB fraud case lands $615M refinancing

Witkoff sells two commercial condos at
420 Fifth for $52M

Schrager, Witkoff snag $173M refinancing
of Public hotel

“I can’t do anything in this town today”: Steve Witkoff is fed up with New York development costs

Midtown Equities to take stake in long-delayed Battery Maritime project