Larry Silverstein, the developer behind the World Trade Center complex in Manhattan, is eyeing more opportunities uptown.
The 93-year-old real estate mogul — who has largely focused on developing towers in downtown Manhattan — said he would consider expanding more in Midtown as commercial-property distress spurs more deals. Plunging property values mean developers can snap up office buildings cheaper and potentially renovate the properties or convert them into housing.
“There are going to be many opportunities in Midtown,” the chairman of Silverstein Properties said in an interview. “You’ve got many office buildings that are no longer functional, and banks are finding themselves increasingly in possession of buildings that they don’t want to possess.”
Silverstein, who purchased the lease to operate the World Trade Center just weeks before the Sept. 11 terrorist attacks in 2001, is known for his role helping redvelop the area after the destruction, which he has chronicled in a new book called The Rising. Nowadays, his company owns and operates more than $10 billion of real estate assets with properties in cities including New York, Philadelphia and Los Angeles.
While his focus in New York has largely centered on downtown, his company owns a few properties in Midtown, including an office tower and apartment buildings.
More developers have been considering taking aging office buildings and turning the properties into housing, with those conversions picking up in New York as office vacancies have risen since the pandemic. Silverstein is now working to convert 55 Broad St., a former office building for Goldman Sachs Group Inc., into apartments, its first such project.
While those conversions are often complicated and costly, they offer one possible path for properties that are languishing.
“Residential is going to find its way increasingly into Midtown Manhattan and into what was originally office neighborhoods,” Silverstein said.
Final piece
Silverstein still remains focused on the massive redevelopment of the World Trade Center area, where his company developed the 3, 4 and 7 World Trade Center skyscrapers that count tenants including Moody’s Corp., Uber Technologies Inc. and Spotify Technology SA.
The fate of the final office building in Silverstein’s master plan, a tower at 2 World Trade Center, is still unknown. Currently, the site is a plot that houses mechanical equipment and a beer garden.
Silverstein has been in talks with American Express Co. to relocate its headquarters from nearby, said people familiar with the matter who asked not to be identified, citing private matters.
Silverstein declined to name any potential tenants but said a deal could happen for the tower in the “very near future.”
A spokesperson for American Express said that the company regularly evaluates its global real estate strategy and that it’s committed to staying in Manhattan.
“We are conducting a thorough assessment of our corporate headquarters located at 200 Vesey St., including the potential to refurbish our current space or relocate to another facility in Manhattan,” the spokesperson said. “This is a multiyear process, and no decisions have been made at this time.”
Silverstein added that the rest of his World Trade Center offices are 97% occupied.
Silverstein was optimistic that the financing environment will improve as the Federal Reserve weighs cutting its benchmark rate. Building an office tower, especially one without tenants lined up, has been tough as lenders pulled back.
Casino bid
Silverstein also sees opportunity in a swath of Manhattan near the Jacob K. Javits Convention Center, where he proposes to turn a plot into a gambling, hotel and housing complex called the Avenir. He is one of several developers vying for one of three licenses to bring a casino to New York City and its surrounding suburbs.
Silverstein is partnering with Greenwood Gaming and Entertainment on the proposal, which would build two 46-story towers with luxury hotel rooms and more than 100 affordable housing units on 41st Street and 11th Avenue. The plan hasn’t received much pushback, he said, helping bolster his confidence that he has a good shot at winning one of the licenses.
The New York State Gaming Facility Location Board expects to determine the winners of casino licenses by the end of 2025. Silverstein is confident that one will end up being built in Manhattan despite opposition from some local politicians and community boards, because the city and state governments will want venues that generate as much tax revenue as possible.
“It’s unquestionable that there’s a need for more revenue at both levels, city and state," Silverstein said. "And because there’s this constant need for revenues, and it constantly increases, the casino is a vital source.”