American Express announced this week that it will build a 2 million-square-foot global headquarters at 200 Greenwich Street, committing to the long-stalled tower in a deal that is reshaping the downtown office narrative. Silverstein Properties will develop the 55-story building, designed by Foster + Partners. Construction is expected to begin this year and be completed in 2031.
The long-awaited agreement gives Silverstein the anchor contract that the company has been seeking for years. Securing a top-tier tenant was essential to unlocking construction financing for the final parcel on the World Trade Center site, where Silverstein signed a 99-year lease with the Port Authority just weeks before September 11.
The tower will accommodate up to 10,000 employees and include more than one hectare of terraces and gardens. There are plans to pursue LEED certification – anything but mandatory features in today’s flight-to-quality market.
For the office sector in Manhattan, the consequences extend far beyond the campus. On 2
million square feet, the commitment is among the largest single-tenant office bets since the pandemic and signals that trophy, land development can still happen if the tenant is right.
The deal also divides the market. While aging Class B and C properties struggle with vacancies and transaction discounts, brand new, facilitated towers continue to command long-term commitments for businesses.
AmEx’s move underscores that large employers are willing to hold on to future space, but only in buildings that meet all the requirements, which older inventory cannot easily replicate.
In the short term, the project addresses one of the city’s most visible development issues. Longer term, it may encourage other developers sitting on eligible sites to test the market, although few will find a tenant with AmEx’s balance sheet.
As AmEx prepares to take control of Lower Manhattan, here’s what else is happening in New York City real estate this week.
Josh Schuster pleads guilty to $10 million Ponzi scheme
Disgraced developer Josh Schuster agreed to change his plea to guilty on a charge related to a $10 million Ponzi-like scheme nine months after he was indicted; he faces a prison sentence of up to twenty years.
The scheme involved Schuster allegedly promising investor stakes in projects but instead using the money to pay off previous investors and cover his credit card and gambling debts.
The SEC also has a pending civil case against him.
Manhattan District Attorney Nir Meir in “impasse” over plea deal
Prosecutors have suggested that Nir Meir could face trial if the disgraced former HFZ director fails to reach a settlement over alleged fraud.
Prosecutors allege Meir masterminded an $86 million scheme in which he diverted money from HFZ luxury condo projects, including the XI on the High Line, to other projects or into the personal accounts of HFZ executives.
Meir has pleaded not guilty.
But Meir’s attorney, Stephen McCarthy, told the judge that he has had discussions with the prosecutor, leaving the possibility of a settlement on the table.
Debts, bills and lawsuits are piling up for Irving Langer
Investor Irving Langer and his firm E&M Associates are facing a mountain of lawsuits from partners, lenders and his credit card company, totaling more than $30 million.
Major lawsuits include a $6.7 million judgment (with interest) for a broker’s fee from Georgia Malone & Company, which Langer won on appeal, and a $2.8 million judgment for a loan personally guaranteed to Israel-based lender Aaron Harrow.
His lawyer attributes the growing number of cases to the 2019 changes to the rental law and rising interest rates.
Steve Roth pulls the strings of New York’s top real estate agents, Koreins say
The Korein family is suing Vornado Realty Trust over a leasing dispute at Penn 1, claiming CEO Steve Roth’s influence on the local real estate scene is preventing them from finding an impartial broker to assess the property’s fair market value.
The lawsuit alleges that top brokers, including Darcy Stacom and Bob Knakal, avoided representing the Koreins for fear of jeopardizing the lucrative business with Vornado, with both brokers ultimately representing Vornado in transactions or the appraisal itself.
The disagreement centers on the ground rent for the 2.5 million-square-foot Penn 1, where the $2.5 million annual rent would be reset in June 2023.
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American Express commits to a 2M SF tower at 2 World Trade Center
Josh Schuster pleads guilty to $10 million Ponzi scheme
Manhattan District Attorney Nir Meir is at an “impasse” over the plea deal
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