Silverstein Remains Steadfast in Pursuit of Anchor Tenant for 2 World Trade Center

Over the past two decades, tremendous efforts to rebuild the World Trade Center site has transformed the once “desolate location of unfathomable heartbreak” following the September 11 attacks, into a vibrant centerpiece of Lower Manhattan that serves as a symbolic icon of the great strides the neighborhood has achieved since 2001. The newly envisioned complex would bring the return of six of the seven buildings that stood on the site, five of which were controlled by Silverstein Properties under long-term ground leases secured from fee-owner the Port Authority of New York and New Jersey (PANYNJ). Efforts to break ground on the remaining office building, 2 World Trade Center have yet to successfully secure an anchor tenant, and although it has gotten close to doing so a few times, a deal has yet to close. Unlike towers 3 and 4, which “received significant support from tax-free federal Liberty Bonds meant to help the rebuilding efforts following the 9/11 attacks — Tower 3 received $978 million, and Tower 4 received about $1.4 billion, Tower 2 “was always [meant] to stand on its own financially,” which was “part of the outcome of the 2010 negotiations to finance the sites.” The current state of New York City’s office market has further increased the challenges of getting the project off the ground. “Lower Manhattan in particular has been hit with high vacancy rates and low rents, also keeping in mind the “massive footprint a company would need to lease to anchor a tower the size of 2 World Trade Center.” A total of about $10 billion has been invested by the developer into the World Trade Center complex so far. Remaining steadfast at the age of 93, “company Chairman Larry Silverstein has shown few signs of slowing down in pursuit of 2 World Trade Center;” and is “still relentlessly promoting the project and trying to find a way to get it built.”

Source:    https://www.crainsnewyork.com/real-estate/unfinished-business-2-world-trade-center