After decades of false starts, 2 World Trade Center finally got its anchor.
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 reshapes the downtown office narrative. Silverstein Properties will develop the 55-story building, designed by Foster + Partners. Construction is expected to begin this year and wrap in 2031.
The long-anticipated agreement gives Silverstein the anchor lease the firm has chased for years. Securing a blue-chip tenant was essential to unlock construction financing for the final parcel at the World Trade Center site, where Silverstein signed a 99-year ground lease with the Port Authority just weeks before 9/11.
The tower will house up to 10,000 employees and include more than an acre of outdoor terraces and gardens and there are plans to pursue LEED certification — all but mandatory features in today’s flight-to-quality market.
For Manhattan’s office sector, the implications extend well beyond the campus. At 2
million square feet, the commitment ranks among the largest single-tenant office bets since the pandemic and signals that trophy, ground-up development can still pencil if the tenant is right.
The deal also crystallizes a bifurcated market. While aging Class B and C properties struggle with vacancy and discounted trades, brand-new, amenitized towers continue to command long-term corporate commitments.
AmEx’s move underscores that major employers are willing to lock in future space, but only in buildings that check all the boxes, which older stock can’t easily replicate.
In the near term, the project removes one of the city’s most visible development question marks. In the longer term, it may embolden other developers sitting on entitled sites to test the market, though few will find a tenant with AmEx’s balance sheet.
As AmEx prepares to lord over Lower Manhattan, here’s what else is going on in New York City real estate this week.
Josh Schuster to plead guilty to $10M Ponzi scheme
Disgraced developer Josh Schuster agreed to change his plea to guilty on a count related to a $10 million Ponzi-like scheme, nine months after being charged; he faces up to 20 years in prison.
The scheme involved Schuster allegedly promising investors stakes in projects but instead using the funds to pay off earlier investors and cover his credit card and gambling debts.
The SEC also has an ongoing civil case against him.
Nir Meir, Manhattan DA at an “impasse” on plea deal
Prosecutors have suggested that Nir Meir could be headed to trial if the disgraced former HFZ executive cannot reach a plea deal over alleged fraud.
Prosecutors allege Meir was the mastermind behind an $86 million scheme that saw him divert funds from HFZ luxury condo projects, including the XI on the High Line, to other projects or HFZ executives’ personal accounts.
Meir has pleaded not guilty.
But Meir’s attorney, Stephen McCarthy, told the judge he’s had conversations with the prosecutor, leaving the possibility of a plea deal on the table.
Debts, bills and lawsuits pile 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 in excess of $30 million.
Major lawsuits include a $6.7 million judgment (with interest) for a broker’s fee from Georgia Malone & Company, which Langer has won an appeal on, and a $2.8 million judgment for a loan personally guaranteed to Israel-based lender Aaron Harrow.
His attorney attributes the growing number of cases to the 2019 rent law changes and rising interest rates.
Steve Roth pulls the strings of NYC’s top brokers, Koreins say
The Korein family is suing Vornado Realty Trust over a rent dispute at Penn 1, alleging that CEO Steve Roth’s influence on the local real estate scene prevents them from finding an impartial broker to appraise the property’s fair market value.
The lawsuit claims that top brokers, including Darcy Stacom and Bob Knakal, avoided representing the Koreins for fear of jeopardizing lucrative business with Vornado, with both brokers eventually representing Vornado in transactions or the appraisal itself.
The disagreement centers on the ground lease for the 2.5 million-square-foot Penn 1, where the $2.5 million annual rent was due to be reset in June 2023.
Read more
American Express commits to 2M sf tower at 2 World Trade Center
Josh Schuster to plead guilty to $10M Ponzi scheme
Nir Meir, Manhattan DA are at an “impasse” on plea deal
