The transformation of the old shipping and bus terminal at Pier 57 to a $350 million office, retail and park destination is one step closer to being a reality, thanks to a multi-million dollar loan.
PNC Bank is providing $225 million in financing to Scott Rechler’s RXR Realty and partner Youngwoo & Associates for the redevelopment of Pier 57, a source with intimate knowledge of the deal told Commercial Observer.
The deal, which has yet to close, will fund the restoration of the pier as well as the construction of the 560,000-square-foot mixed-use development, the source, who requested anonymity, said. It was not immediately clear if the loan would be syndicated.
“We are not closed yet on this transaction and are still finalizing terms and agreements with all of the relevant parties,” Seth Pinsky, an executive vice president at RXR, told CO over email.
In 2008, Youngwoo & Associates was designated by Hudson River Park Trust to redevelop the site, and six years later, RXR came in as a joint venture partner on the project. The development partnership entered a 97-year ground lease for the property, located between West 15th and West 16th Streets on the Hudson River, with the trust and in December 2015 received state approval for the project.
Google will serve as the anchor tenant, having signed a 15-year lease for 250,000 square feet in the 480,000-square-foot office component of the development, according to The Wall Street Journal. There will also be an 80,000-square-foot public park on the building’s roof and 34,000 square feet of public esplanades around the 900-foot structure.
Celebrity chef Anthony Bourdain signed a letter of intent to construct a large public market on the main concourse and mezzanine of the development. Bourdain Market is slated to occupy 100,000 square feet, as CO previously reported. It will cost between $20 million to $30 million to construct, according to Eater.
Spokeswomen for PNC and Youngwoo & Associates declined to comment.
With additional reporting provided by Lauren Elkies Schram.