RXR Realty enters joint venture to bring offices to Pier 57
Developer Youngwoo & Associates still plans to create affordable retail space on ground level
Scott Rechler’s RXR Realty has entered a joint venture with Youngwoo & Associates to operate offices at Pier 57, the West Side development originally conceived as a shopping complex dubbed SuperPier.
RXR will convert 200,000 to 300,000 square feet of space on the pier into offices, Crain’s reported. Youngwoo & Associates will move forward with plans to transform ground-level shipping containers into affordable retail units and finalize preliminary deals with anchor tenants, according to the news site.
Rechler told Crain’s that the success of the Starret-Lehigh Building at 601 West 26th Street, which RXR purchased in 2011 for almost $1 billion and is 98-percent leased, encouraged him to look for new office opportunities in the area.
The financial terms of the deal were not disclosed, but Rechler tacked on an additional $150 million to Youngwoo’s original estimate for the total cost of conversion, putting the price at $350 million, according to the news site.