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Howard Hughes buys Milstein’s Seaport site for $180M

The Milstein family has ended a decades-long plan to develop one of the South Street Seaport’s largest vacant lots.

Milstein Properties, which has owned the site at 250 Water Street for nearly 40 years and faced downzoning and litigation in its repeated development efforts, sold it to Howard Hughes Corporation for $180 million, the Dallas-based developer confirmed to The Real Deal.

The one-acre site, currently a parking lot, offers nearly 290,000 buildable square feet, property records show. The property also has the addresses of 304-312 Pearl Street, 2-8 Peck Slip and 116 Beekman Street.

The deal, which pencils out to a little over $620 per square foot, consists of a $53 million initial payment and a mortgage for the balance. The financing has an initial interest-free term of six months, with three six-month extension options at a rate of 6 percent annually, Howard Hughes said. The second and third extension options each require a $30 million paydown.

Howard Hughes said it has not yet decided its plans for the site. The deal was reported earlier Monday evening by the New York Post.

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TRD