(Bloomberg) -- Howard Hughes Corp.'s scaled down plan for a new tower in Manhattan's South Street Seaport District was approved by local officials, clearing the way for the $850 million project.
The new design for 250 Water St., currently a parking lot that occupies a city block, calls for a 26-story building featuring roughly 270 apartments, as well as retail and office space, the Texas-based developer said in a statement Wednesday.
The lot has been mired in controversy for decades and numerous plans to develop the site have failed over the years, long before Howard Hughes Corp. purchased it in 2018 for $180 million.
The real estate firm, whose chairman is Bill Ackman, last year proposed a $1.4 billion project that featured a pair of 470-foot (143- meter) towers. That design was trimmed down after facing pushback.
A cleanup of the Water Street site will begin in 2022 before construction gets underway. At least 70 of the rentals at the new building will be affordable, according to the company.
Howard Hughes Corp. signed a long-term ground lease with the city for a significant portion of South Street Seaport in 2010. It has invested more than $900 million to redevelop the area, including Pier 17 and a project at the former Fulton Fish Market.
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