NEW YORK | 80 South St | 1,436 FT | 113 FLOORS

Per NYguy:

Lower Manhattan Site Purchased for $390 Million Being Shopped for Half-Off
JANUARY 11, 2022
BY ROBERT SIMKO
Quote:

In a story first reported by the Real Deal, the financial distress plaguing property investment firm China Oceanwide Holdings (itself part of the wider contagion surrounding Shenzhen-based real estate firm, Evergrande) has led to a fire-sale price for a trophy Lower Manhattan parcel.

The company purchased 80 South Street (located between John Street and Maiden Lane) from the Howard Hughes Corporation in 2016 for $390 million. This transaction included a companion site, at 163 Front Street, that shares a mid-block border with 80 South Street. The combined parcel, plus air rights from nearby lots purchased and assembled by Howard Hughes, gave China Oceanwide the right to build a tower with a height of more than 1,400 feet, enclosing more than one million square feet of interior space.

Within months, China Oceanwide filed preliminary designs with the City, and obtained permission to begin demolishing the small legacy structure on the two lots. But the only substantive activity that followed consisted of the company taking out a $175 million loan against the vacant property.

Quote:

By 2020, the COVID pandemic had begun to dampen the speculative value of urban properties, and China Oceanwide was starting to teeter beneath a mountain of debt. Last October, another trophy property slated for development by the firm, its Oceanwide Center in San Francisco, was seized by creditors.

A few days later, Oceanwide Holdings quietly began shopping 80 South Street to prospective buyers. Its asking price is reportedly $200 million—a discount of $190 million (or 48 percent) from the price it paid five years earlier.

The winner in this saga may turn out to be the Howard Hughes Corporation, which is also in the midst of several development projects at the nearby South Street Seaport. That company had purchased 80 South Street for $100 million in 2015, before unloading it to China Oceanwide, just over a year later, at almost four times that price.

8 Likes

Wow what a steal for Howard Hughes.

3 Likes

I certainly hope they sell to an ambitious, competent developer because this is a prominent site with a ton of air rights and no pesky ULURP to deal with. Nothing will rise here for a while, but whatever does should be suitably iconic.

I hope JDS buys it.

2 Likes

Does this have more of a chance to get off the ground now?

The FDR must end at Brooklyn Bridge, and this hideous elevated highway should come down. I lived in this area. This is an eyesore, and it’s noisy. Seattle and Boston eliminated elevated highways that divided their cities. (They buried them underground. New York doesn’t need to do that.)

This forlorn, hideous stretch can be turned into a beautiful, green, waterfront necklace.

Robert Moses is dead, and the city should accommodate pedestrians. Those who complain about traffic congestion shouldn’t drive in one of the most densely populated first world cities.

Who would want to buy a very expensive condo next to this disgusting eyesore?

Further, this area is too remote to be a thriving office area. However, If it gets a lot of new green space, it could be a very desirable residential area.

10 Likes

Per NYguy:
China Oceanwide’s Lender Demands Immediate $165M Payment After Default On Seaport Supertall Site (bisnow.com)
China Oceanwide’s Lender Demands Immediate $165M Payment After Default On Seaport Supertall Site

January 12, 2022
Dan Rabb

Quote:

China Oceanwide Holdings has defaulted on its loan for a major development site in Lower Manhattan, another in a line of problems the Beijing-based developer has faced with its U.S. holdings.

The struggling Chinese developer is in default on a $175M loan against 80 South Street, its stalled mixed-use skyscraper project in New York’s South Street Seaport, documents filed with Hong Kong regulatory authorities show. Monday, lender DW Partners delivered Oceanwide a note demanding immediate payment of the $165M outstanding on the loan.

3 Likes

DW will probably foreclose, Hoping for anything to get the ball rolling here.

Chinese developer defaults on $175M loan for languishing Manhattan supertall site
DW Partners demanding $165M from Oceanwide Holdings

Jan. 13, 2022

Quote:

One of China’s largest companies has taken another hit on its pricey development site in Manhattan’s South Street Seaport.

Oceanwide Holdings defaulted on its $175 million loan against 80 South Street, where a planned skyscraper has been stalled for years, Bisnow reported. The loan was taken out against the property in 2019, while Oceanwide was trying to sell it.

The loan — believed to be the only debt against the property — was set to mature in May 2021, before DW Partners granted Oceanwide a six-month extension. When November rolled around, the debt matured. Bisnow reported Oceanwide missed a $1.3 million payment earlier this month, and DW Partners is demanding an immediate payment of the outstanding $165 million loan.

Quote:

The company had aspirations of building the tallest tower in Lower Manhattan by roof height, to top out at about 1,500 feet. Renderings seen in 2019 showed a glass-heavy tower taking shape in the downtown skyline.

But the plans never fully materialized and Oceanwide quietly began marketing the property in 2019 with Cushman & Wakefield, seeking $300 million. A Colliers International team led by Peter Nicoletti is currently in charge of marketing the property.p

3 Likes