T
he South Street Seaport's new ownership structure, following its spinoff from Howard Hughes Holdings last summer, may signal a shift in direction for the complex. Downtown sources suggest that this change could impact the development of the valuable but stalled site at 250 Water Street, which has been empty since HHH acquired it eight years ago for $180 million.
The one-acre site was intended to be part of a mixed-use project featuring apartments, stores, and public space, but its development was delayed by lawsuits. After receiving approval from the state's highest court last May, HHH planned to build an $850 million complex with 399 apartments above a five-story base. However, before construction began, the company decided to spin off the Seaport into a new entity, Seaport Entertainment Group (SEG).
Six months after the spinoff, there is still no sign of construction at 250 Water Street. A downtown analyst believes that SEG may need assistance with the project, either through a development partner or by selling it outright. Ellie Chamberland, senior vice president of SEG, stated that additional announcements regarding the site's future are expected in the coming months.
Meanwhile, SEG has signed a lease with Grupo Gitano for nearly 14,000 square feet on Pier 17, which will replace the Pearl Alley bar-lounge complex by late February or early March. The two-level, tropical-themed restaurant and club will be the brand's US flagship. Chamberland emphasized that SEG aims to make the Seaport an entertainment and hospitality destination, providing unique experiences for locals.
SEG has taken steps to ensure continuity with the previous ownership, including extending Live Nation's rooftop programming agreement and forming a closer relationship with Jean-Georges Vongerichten's restaurant company. However, the pier still has 100,000 square feet of unleased space. Chamberland stated that SEG's strategy for Pier 17 differs from HHC's focus on leasing office space, instead aiming to bring additional entertainment and hospitality concepts to complement existing offerings.
SEG's plans may be impacted by the Tin Building situation, a Vongerichten-branded food hall that has reportedly struggled with losses and recently laid off 100 kitchen workers due to immigration-status issues.
