Moynihan StationLocation: Manhattan, New York
Client: Empire State Development Corporation
Services: Project Feasibility, Public Private Partnerships, Proposals & Transactions, Public Approvals
Washington Square Partners is currently assisting the State of New York, through its Empire State and Moynihan Station development subsidiaries, to redevelop the James A. Farley Post Office Building into a new train station with mixed use development. This project is one the most significant public/private redevelopment efforts in the country with a cost of over $1 billion dollars. Proposed uses include a new $600 million public transportation hub and up to 1.8 million square feet of private retail, residential and hotel development.
WSP was retained by the state as its development advisor and lead negotiator for the project. WSP led the effort to determine the proposed development program within the Farley Building and deal structure for the project. In addition, WSP marketed the project to developers, which included issuing a Request for Qualifications and Request for Proposals. After receiving development proposals, WSP evaluated the responses and has been negotiating redevelopment agreements on behalf of the State including evaluating financial offers associated with the development scenarios. The project involved a component being delivered under a GMP, an incentive package for the redevelopment, significant federal, state and city grant funding, a financial offer for the private development and ongoing operations and maintenance and associated costs to be shared by public and private tenants.
WSP has assisted with the transaction documents and supporting documentation required by the Public Authority Control Board including an appraisal of the building. WSP managed the efforts of Jerome Haims Realty on this effort. WSP evaluated the financial proposal, established the financial terms that were the basis of negotiations with the developer, established the operating costs associated with the common areas for both the Farley Building and the redeveloped Pennsylvania Station, negotiated the Memorandum of Understanding with Amtrak, evaluated transaction options, and provided the client with leasing and management/operational advice related to the retail aspects of the project.