T
he owners of 175 Water Street are attempting to lure high-profile office tenants with discounted, short-term deals in hopes of securing more lucrative agreements later. However, these tenants are paying significantly less than their neighbors, and may face a financial predicament soon, according to the New York Times.

    Founded by Quebec businessman Carlo Bellini, the limited liability company 99c purchased the former AIG headquarters for $252 million two years ago. Dawson Stellberger of Bushwack Capital is also involved in the venture. The building's unusual branding was conceived by Gabriella Khalil, founder of the Palm Heights hotel on Grand Cayman island.

    Khalil envisions 175 Water Street as a hub with production facilities, art galleries, restaurants, bars, and a four-level department store. She specifically targets FACT (fashion, arts, creative, and technology) tenants, many of whom are signing two-year leases at discounted rates – as low as $11.20 per square foot. This is still a bargain compared to the downtown average of $57.16 per square foot.

    The building's owners aim to create buzz through high-profile events, which have already attracted celebrities like Emily Ratajkowski and Tim Cook. However, the financial viability of this strategy remains uncertain, given the projected $150 million renovation cost and a $165 million mortgage. The ownership does possess tax incentives worth $41.3 million and additional breaks totaling $39.8 million through the M-CORE program.