PANYNJ Considers Selling RE, One WTC
- Dec 29, 2014
Port Authority of New York and New Jersey officials are talking about possibly selling some of its real estate, including One World Trade Center, according to various news sources.
In a 100-page report released over Christmas weekend, a plan proposes selling off some of the authority’s properties. The idea is not a new one. A few months ago Chairman John Degnan has mentioned in meetings possibly disposing of the 1.776-foot WTC tower once it becomes marketable.
“If One World Trade Center turned out to be profitable in five to 10 years, yes, we should consider selling it,” he said in a September 2014 meeting, according to the Star-Ledger. The organization has been upholding that plan by gradually selling off its assets over the past 15 years.
In its pledge to reform the Port Authority, both Governors Andrew Cuomo and Chris Christie agreed that real estate sales should be at the forefront of a proposed overhaul of the Port Authority, in light of the George Washington Bridge scandal, which brought attention and criticism to the agency. Instead they want the agency to redirect its focus on its core mission of transportation projects.
“Prudently divest existing real estate holdings and restrict future real estate investments to those integral to the Authority’s core transportation mission,” per the report.
The proposal was issued at the same time that both governors blocked the efforts of lawmakers in both states to reform the Port Authority.
It is still unknown how the plan will be carried out, according to Degnan, and it is predicted to take several years to sell Port Authority’s 90-percent stake in One WTC, according to the Wall Street Journal.
One WTC has become a desirable office space due to its location and magnitude, being the tallest skyscraper in Manhattan. Several tenants have already moved in over the past few months into the landmark tower, including publishing giant Conde Nast, Servcorp, C12 Capital Management, Incandescent Technologies, High 5 Games, and mobile advertising company xAD, to name a few.
Stay tuned for more updates on the story this week.