Date: Jul 07, 2010
Press Release Number: 48-2010
Action Adds to Growing Market Confidence in One WTC and Momentum of Entire WTC Site
The Port Authority today selected The Durst Organization (“Durst”) to negotiate acquisition of an equity membership interest in One World Trade Center. Over approximately the next 30 days, Port Authority staff and Durst will work to finalize an agreement subject to the approval of the Board of Commissioners.
The selection follows an intensely competitive six-month process involving some of New York City’s and the nation’s most prominent private sector real estate interests – all vying for a stake in One World Trade Center.
The Port Authority chose to advance negotiations with Durst because its proposal best aligned with the agency’s interests in the long-term success of the office tower and because of the firm’s prior success in developing premier, “green” office buildings.
Port Authority Chairman Anthony R. Coscia said, “We’re extremely pleased that some of the most prominent developers in the country saw market value in this world-class office tower, and engaged in an extremely competitive process for a stake in it. What is most important is that we reach an agreement that is good for the building, for the World Trade Center site and for the region.”
Port Authority Executive Director Chris Ward said, “This confirms a clear and growing market interest in One World Trade Center and adds further momentum to the development of the overall site.”
Under the Durst proposal, the firm will make a minimum investment of $100 million to acquire a membership interest in One World Trade Center LLC. Durst will also bring its expertise in assisting the Port Authority with ongoing construction and take on primary responsibility for tenant fit-out, leasing and property management. In exchange, Durst would receive a financial return tied to its equity interest and performance of the building.
The family owned Durst Organization controls ten million square feet of commercial office space with a current occupancy rate of 97 percent. Most recently, it successfully developed and opened One Bryant Park, the 2.1 million square foot tower on 42nd Street, which is home to Bank of America.
Construction of One World Trade Center has now risen to the 28th floor – about 270 feet above street level.
When completed in 2013, the LEED Gold Certified tower will contain approximately 2.6 million square feet of world-class office space, along with an observation deck and a skytop restaurant.
Currently, the Port Authority has leases or commitments for approximately 1.3 million square feet of space in the tower. The Vantone Industry Co. has signed a lease for 190,810 square feet of office space, which it plans to use for the China Center. The U.S. General Services Administration and the New York State Office of General Services have commitments totaling 1.1 million square feet.
The Port Authority of New York and New Jersey
John Kelly or Steve Coleman, 212 435-7777
The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade.