A vacant 1.1-acre lot in the Financial District is drawing interest from scores of bidders, its owner said today.
The land at 250 Water St. was put on the market in March after its owner, Seaport Entertainment Group, decided to sell it to focus on improving the nearby South Street Seaport and beefing up its unprofitable restaurant business.
It isn’t clear what 250 Water’s dirt is worth but it comes with the right to develop a 26-story, 550,000-square foot mixed-use tower with 399 apartments. The site, a five-minute walk from the Fulton Street subway station and marketed by brokerage firm JLL, last changed hands seven years ago when a Seaport predecessor bought it from the Milstein family for $180 million.
“We’ve had over 130 potential buyers or partners express interest” in the vacant property, Seaport CEO Anton Nikodemus said on a conference call Tuesday. He added: “We have a lot of work to do to stabilize our assets.”
Seaport Entertainment has been losing money and burning cash since it was spun off last summer from developer Howard Hughes Holdings. It is 40% owned by Pershing Square Capital Management, a hedge fund founded by money manager Bill Ackman.
Late yesterday Seaport reported a $32 million quarterly operating loss, led by a $13 million loss in its hospitality segment. Losses there were driven by continued challenges at the Tin Building, a food court at the South Street Seaport operated by Jean-Georges Vongerichten’s restaurant enterprise.
Seaport owns a 25% stake in Jean-Georges and the partners have been selected by the management of Bryant Park to take over the restaurant long occupied by the Bryant Park Grill. Seaport officials didn’t say on the call whether they’ve finalized a lease for the space. Bryant Park Grill, one of the nation’s highest-grossing restaurants, is fighting in court to stay open and continues serving customers even though its lease expired April 30.
Seaport Entertainment shares rose by 50 cents to around $20 each in midday trading Tuesday. The stock traded for $31 at the time of its spinoff last year.
