Long-time owner Milstein Properties is the seller
Howard Hughes Corporation has acquired a development site at 250 Water Street near the South Street Seaport from Milstein Properties for $180 million. The vacant one-acre lot allows for the development of 289,000 square feet, according to the NYPost who first reported the news.
Worth Noting: Howard Hughes owns additional development rights at nearby properties it owns, which can be transferred to this site with approvals from the city.
Financing Details: The developer paid $53 million upfront and secured a mortgage for the balance. The first six months are interest free, with three six-month extension options at 6 percent. The second and third extension options each require a $30 million paydown, according to the NYPost.
Be Smart: Milstein paid $5.77 million for the site in 1979. When adjusted for inflation, that translates to a mere $19.9 million in 2018 dollars. Buy and hold!