Connect CRE reports that Howard Hughes Holdings has recently acquired air rights from the city for its highly anticipated 250 Water St. residential development in the Seaport District. According to records from the New York City Department of Finance, this payment grants Howard Hughes exclusive air rights over Piers 16 and 17.
The agreement between Howard Hughes and the city was finalized in 2021, with a total cost of $40 million for these valuable air rights. This investment will be used to support their plans for a stunning 399-unit apartment tower, while also providing financial support to the nonprofit South Street Seaport Museum.
However, there were some challenges along the way as nearby residents filed a court case against this project. In late-2022, Manhattan Supreme Court Justice Arthur Engeron ruled in favor of these residents by stating that there was an “impermissible” quid pro quo relationship between Howard Hughes and NYC’s Landmarks Preservation Commission. Fortunately, this decision was overturned by a state appeals court in early-2023.
Overall, it is clear that despite some obstacles along the way,
Howard Hughes has successfully secured crucial air rights for their exciting new project at 250 Water St., which will undoubtedly bring significant benefits to both themselves and their community partners.
