Can Steve Witkoff save the Battery Maritime hotel?

Lenders talk to developer about kick-starting stalled project

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

arrow_forward_ios
The Real Deal's Erin Hudson with Property Markets Group's Kevin Maloney, Crescent Heights' Russell Galbut, Kushner Companies' Nikki Kushner Meyer and Witkoff Group's Steve Witkoff
Witkoff, Kushner, PMG, Crescent Heights talk strategy at TRD’s Miami event
Witkoff, Kushner, PMG, Crescent Heights talk strategy at TRD’s Miami event
From the rubble: How NYC real estate lived 9/11
From the rubble: How NYC real estate lived 9/11
From the rubble: How NYC real estate lived 9/11
Witkoff Group CEO Steve Witkoff, Simon and David Reuben and The West Hollywood Edition (Getty, Witkoff)
Reuben brothers look to foreclose on Witkoff’s West Hollywood Edition
Reuben brothers look to foreclose on Witkoff’s West Hollywood Edition
Steven, Lauren and Zach Witkoff with the Ritz-Carlton Residences, Miami Beach (Getty, Witkoff, Ritz Carlton)
Witkoffs buy condos at Ritz-Carlton Residences in Miami Beach
Witkoffs buy condos at Ritz-Carlton Residences in Miami Beach
Howard Lorber and Steve Witkoff (Getty, iStock)
Lorber, Witkoff launch $250M SPAC
Lorber, Witkoff launch $250M SPAC
Steve Witkoff and Ian Schrager in front of the iconic PUBLIC hotel escalators. (PUBLIC, Getty)
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
EB-5 fund alleges Schrager, Witkoff siphoned money from Public Hotel
Charles Koch of Koch Real Estate Investments and 2777 South Las Vegas Boulevard (Getty, iStock)
Koch buys Las Vegas casino development
Koch buys Las Vegas casino development
The Woolworth Building at 233 Broadway (Getty)
What office tenants pay at Witkoff & Cammeby’s Woolworth Building
What office tenants pay at Witkoff & Cammeby’s Woolworth Building
arrow_forward_ios

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

Loading...