By Hellen Zaboulani
The Port Authority of New York & New Jersey, which owns the land at the World Trade Center, voted to pursue development of a residential tower at the WTC site.
As reported by Crain’s NY, the bi-state Authority has entered exclusive negotiations with Brookfield and Silverstein Properties to develop a 920-foot residential tower, which would be the fifth building constructed on the site.
The project would have 1,325 apartments, including 330 units put aside for households with average incomes lower than 50 percent of area median income, which is now $51,200, as per Port Authority officials. That would make it the building with the most affordable housing units in Lower Manhattan. Construction on the tower is slated to begin in 2023.
The Tower 5 site was formerly home to the Deutsche Bank building, which also received significantly damaged from the terrorist attacks of September 11, 2001. Formerly a 39-story office skyscraper, the structure was closed after the attacks, due to contamination that spread from the collapse of the South Tower. The roughly 33,000 square foot lot is situated directly to the south of Liberty Park.
The news comes despite the fact that Manhattan’s downtown has felt the full impact of the Coronavirus pandemic, with buildings lying vacant. Office rents have dropped in the city as employees continue to work from home, and companies reassess how much space they require. Conde Nast, the global mass media company who is the anchor tenant at One World Trade Center, is trying to terminate or renegotiate its lease for over 1.2 million square feet of space, and is said to be delinquent in paying $2.4 million of rent. Further, Larry Silverstein, the developer who rebuilt the bulk of Lower Manhattan after the terrorist attacks, has not yet completed his final skyscraper at 2 World Trade Center.
Additionally, tourists have been non-existent, leaving retailers and hotels devastated. Prices for apartment rents have also dropped in Manhattan, with residents bolting to less crowded locations with more outdoor space. The plans for a new tower reflect hope that New York City will be able to bounce back from the pandemic. “The private sector is looking past the immediate the impact of Covid on to recovery,” said Rick Cotton, executive director of the Port Authority, following the announcement.
“This announcement is a giant vote of confidence for Lower Manhattan,” said Mr. Silverstein, in a news release.