Tavros Completes Acquisition of Historic 250 Water Street Development in Manhattan's Seaport for $143 Million

Tavros Completes $143 Million Acquisition of 250 Water Street

Tavros, a New York City-based real estate investment management and development firm, has made headlines with its recent acquisition of the 250 Water Street site, situated in Manhattan's historic Seaport District, for an impressive $143 million. This development is not just a business move; it represents a significant investment in the future of New York City’s housing landscape.

The site covers a full city block and is set to host a mixed-use development featuring approximately 600 residential units, a crucial inclusion being that 25% of these will be designated as affordable housing. Notably, of this affordable segment, around 80% will be categorized as deeply affordable, ensuring that a portion of the development caters to lower-income residents, a pressing need in the city.

Designed initially by the renowned architectural firm Skidmore, Owings & Merrill, Tavros plans to maintain the initial design elements while partnering with Fogarty Finger as the lead design architect moving forward. The development will include a five-story podium that houses ground-floor retail spaces, complemented by four floors of commercial space above, creating a vibrant community hub that aligns with the bustling environment of the Seaport.

Nicholas Silvers, a founding partner at Tavros, expressed enthusiasm about the project, stating, "The South Street Seaport is one of the most historically significant locations in New York City and has evolved into a dynamic residential neighborhood. We are thrilled to help carry forward a project that will have a meaningful impact on Manhattan for decades to come." This sentiment underscores both the company’s commitment to architectural integrity and its dedication to enhancing community living standards.

Tavros has been actively involved in multiple significant projects within New York City, including a 55-story condominium in Long Island City, Gowanus Wharf—a five-building residential complex providing over 2,200 units, and a commercial building at 50 Ninth Avenue, home to Rolls Royce's luxury showroom. The firm’s collaboration with Charney Companies on Gowanus Wharf emphasizes their commitment to large-scale developments that cater to diverse residential and commercial needs.

The transaction was facilitated by JLL, which represented the seller and advised Tavros on the pre-development loan provided by BDT MSD Partners, a merchant bank focused on serving business owners and long-term strategic investors. Additionally, Atlas Capital made an equity investment to support both the acquisition and pre-development stages of 250 Water Street, underscoring the project's attractiveness to capital investors seeking opportunities in New York’s thriving real estate market.

Andrew Scandalios, one of the JLL Senior Managing Directors involved in the deal, characterized 250 Water Street as an irreplaceable development opportunity in an area known for its dynamic nature. He stated, "The combination of a full-block site, compelling scale, and long-term growth fundamentals made this a highly competitive process, and we are thrilled to have advised Tavros and Atlas in executing a best-in-class capitalization."

As urban living continues to evolve, the introduction of projects like 250 Water Street is a vital step towards providing housing that meets the diverse needs of New York's population while also honoring the historical significance of its surroundings. With Tavros at the helm, this development is poised to not only enrich the local skyline but also support a more inclusive community in Manhattan.