Howard Hughes Saga Ends as Seaport Site Sells At a Loss
Proposed mixed-use tower development at 250 Water Street faced opposition from locals worried about neighborhood character
By Larry Getlen August 19, 2025 2:32 pm
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A property with a tumultuous history will be selling at a more than 16 percent loss, as Manhattan’s 250 Water Street will change hands for $150.5 million seven years after going for $180 million.
Seaport Entertainment Group (SEG) announced that it has entered an agreement to sell the mixed-use project to the real estate investment management and development firm Tavros.
Howard Hughes Corporation (HHC) bought the full-block, one-acre property in 2018 for $180 million, and then acquired the property’s air rights for $40 million in 2024. No word on whether the air rights were included in the current transaction. Tavros declined to comment on the sale.
Facing intense community opposition for the project’s potential effect on neighborhood character, HHC spent three years attempting to secure approval from the New York City Landmarks Preservation Commission (LPC) to construct a 25-story tower before finally securing initial permission in May 2021. The planned tower was to be 540,000 square feet with 270 residential units, including 70 affordable, and was to be designed by Skidmore, Owings & Merrill (SOM), according to reporting at the time by Commercial Observer.
But a judge ultimately overturned the LPC’s determination, and the project remained in legal limbo until May 2024, when the New York State Court of Appeals rejected a motion from local groups calling for the denial of the LPC approval.
This all became somewhat moot two months later, when HHC split into two companies, with responsibility for 250 Water Street falling to the newly christened SEG. The other new company in the split, known as Howard Hughes Holdings (HHH), paid off a loan for 250 Water Street of about $51 million, according to reporting in CO.
The property is currently entitled for the construction of a 26-story, mixed-use building with up to 399 residential units and around 200,000 square feet of commercial retail and community space, according to the SEG announcement.
“We believe the anticipated sale of 250 Water Street marks a significant milestone for Seaport Entertainment Group, unlocking capital that is poised to enhance our balance sheet, support new sustainable growth opportunities, and create long-term value for our shareholders,” Anton Nikodemus, chairman, president and CEO of SEG, said in the statement. “We are confident that Tavros, an experienced and engaged New York City developer, is well-positioned to bring this project to life in a way that respects the character of the neighborhood and contributes positively to the community.”
The agreement includes a non-refundable $6 million deposit, as well as provisions that could raise that amount to $8.5 million and the sale price to $152 million before closing, according to SEG. The deal is expected to close before year’s end.
A JLL team led by Andrew Scandalios, Ethan Stanton and Nicco Lupo represented SEG. No word on who represented Tavros.
Tavros has been busy in New York City of late. Earlier this month, it broke ground on a 55-story Long Island City, Queens, condominium tower encompassing the properties at 24-19 Jackson Avenue and 45-03 23rd Street in the neighborhood’s Court Square area that it’s developing with Incoco Capital and Charney Companies.
In May of this year, Tavros and Charney secured $145 million in financing for 175 Third Street in Brooklyn, set to be the largest building in the borough’s Gowanus neighborhood at around 1 million square feet and 1,000 residences. 175 Third Street will be the fourth building in the two companies’ 2 million-square-foot, 2,200-residence Gowanus Wharf campus.
Larry Getlen can be reached at lgetlen@commercialobserver.com.
