Tavros Scoops Full-Block Lower Manhattan Site for $143M, Plans 600 Unit Mixed Use Project

Key Points

• Tavros acquired a one-acre, full block site at 250 Water Street for $143M.
• The developer is planning a 600-unit residential project, with 25% affordable housing.
• The purchase reflects a discount to prior pricing, highlighting reset land values in Manhattan.

The Deal

Tavros has closed on the $143 million acquisition of 250 Water Street in Lower Manhattan’s Seaport neighborhood, buying the site from Seaport Entertainment Group. The site spans a full city block near the Brooklyn Bridge and the East River, one of the most supply-constrained pockets of Manhattan. The price came in below both the $150 million figure reported in mid 2025 and the $180 million Howard Hughes Corp. paid for the asset in 2018, not including an additional $40 million spent on air rights. For investors, the transaction underscores how patient capital is now re-entering high barrier markets at adjusted bases.

Development Plan

Tavros is planning a 600-unit ground-up residential building with a retail component. Twenty-five percent of the apartments will be affordable, and notably, 80 percent of those affordable units will be deeply affordable, positioning the project squarely within New York’s housing policy priorities. The building will rise from a five-story podium, with ground-floor retail and four levels of commercial space. The developer intends to use an existing Skidmore, Owings & Merrill massing and façade concept, with Fogarty Fingertaking over design for the remainder of the project. No construction timeline has been disclosed.

Capital Stack and Advisors

JLL represented the seller and also advised Tavros on a pre-development loan from BDT & MSD Partners. Atlas Capital provided equity for the acquisition. The deal structure reflects a growing trend of measured leverage and institutional equity returning to New York ground-up plays, particularly those with an affordable housing component.

Why It Matters

After years of litigation and political resistance stalling prior plans, 250 Water Street is finally moving forward under a developer willing to lean into affordability and mixed-use density. With Manhattan supply growth remaining within historical norms and employment growth still outpacing the national average, projects like this signal renewed confidence in long term rental demand. For landlords and institutional investors, the takeaway is clear: well-located Manhattan development sites are trading again, but only at prices that allow projects to pencil in a higher-cost, more regulated environment