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Pier 40 Air Rights Are Worth Less Than Expected, Say Appraisers

Developers agreed to pay $100 million, but the value is closer to $75 million

The developers behind the St. John's Terminal redevelopment might be paying extra to acquire the air rights to Pier 40, located across the street from the proposed development, Crain's reports.

An appraisal commissioned by the owners of Pier 40, the Hudson River Park Trust, revealed that the value of the air rights is at about $75 million, compared to the $100 million that Westbrook Partners and Atlas Capital Group agreed to pay for them. The developers need the air rights to build their project as is.

Plans call for a five building project at the St. John's Terminal site that will include market-rate and affordable housing, and 400,000 square feet of commercial space that could be used for a mix of offices, a hotel, and retail.

But before anything is set in stone, the developers need to go through a lengthy public review process, which is set to begin next week. It's only when that rezoning request is approved for the project can the sale of the air rights proceed.

The Hudson River Park Trust intends to use the money from the sale to begin repairs at the crumbling Pier 40 facility.