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Westbrook seeks partner to help redevelop St. John’s Terminal
Investor would pitch in for purchase of 200K sf of air rights
Westbrook Partners is looking for a developer to provide $100 million to help convert the St. John’s Terminal into a 1.7 million-square-foot office-and-residential complex.
The investment firm, which is the majority owner of the terminal at 550 Washington Street, needs a partner to help buy 200,000 square feet of air rights from nearby Pier 40 for $100 million, Crain’s reported. Westbrook is seeking to rezone its property, so that it can demolish the existing four-story building on the site and construct a five-building complex.
Eastdil Secured’s [TRDataCustom] Adam Spies is handling the search on behalf of Westbrook.
Westbrook struck a deal with the city to buy the air rights last year, and the proceeds from the sale will be used to repair Pier 40.
In 2013, Westbrook bought out Eugene Grant’s majority stake in the building for $250 million, and then acquired Fortress Investments Group’s stake for $200 million last year. Atlas Capital Group is a minority owner in the building.
Westbrook has a potential fallback plan if the rezoning doesn’t pan out or if the residential market becomes too soft. The company may opt to build roughly 1.3 million square feet of office space instead. [Crain’s] — Kathryn Brenzel