More Contracts for Freedom Tower

Port Authority steps up work on the Freedom Tower. Also, a landmark downtown building undergoes another conversion.

$1.1 Billion More for Freedom Tower

The Port Authority of New York and New Jersey approved $1.1 billion worth of new contracts for construction of the $2.9 billion Freedom Tower earlier this year in the midst of ongoing debate over whether the project should move forward in its current form on Manhattan's World Trade Center site.

Photo by Michael DiVito.

Meanwhile, the Port Authority was also talking to private developers about possible partnerships involving the Freedom Tower, says Steve Coleman, an agency spokesman. He denied reports, however, that the agency is trying to sell the building outright only months after taking over development responsibilities from Silverstein Properties of New York.

Several of the new contracts went to Tishman Construction of New York, which Silverstein originally had selected to perform construction management work when it was acting as developer of the Freedom Tower, also known as Tower 1, and four other office buildings in the World Trade Center complex. After protracted negotiations over Silverstein's role last year, the Port Authority took over construction of both the Freedom Tower and Tower 5 in September, with Silverstein retaining its role developing Towers 2, 3, and 4.

Despite the change in developers, the Port Authority reconfirmed Tishman's role in January, approving a $26.5 million construction management services contract. Tishman will also manage $170 million in general conditions work. The agency is managing development through its 1 World Trade Center LLC affiliate.

Foundation work began last year on the 2.6-million-sq-ft tower, which will have 69 tenant floors. Early steel erection started in December. It is slated for completion in 2012.

Earlier this year, the agency announced plans to award another $492 million worth of contracts immediately and the balance of another $500 million around midyear. The announcement came only days after New York Gov. Eliot Spitzer extended his support for the project in its current form as the "best and wisest alternative," displacing comments he had made prior to taking office describing the tower as a "white elephant."

In late March , the authority issued the first set of new contracts, totaling $105 million, to Rael Automatic Sprinkler for fire protection work and Thyssen Krup Elevator for elevators and escalators.

Meanwhile, current plans for the tower gained critics in recent months. New York-based architect Rafael Viñoly, who had been one of the finalists to design the World Trade Center redevelopment master plan, suggested eliminating the Freedom Tower at a meeting earlier this year hosted by the Alliance for Downtown New York. Viñoly proposed a redistribution of the tower's square footage among the three office buildings along Greenwich Street. Viñoly's office did not return calls for comment on the agency's decision.

More critics surfaced a month later when Douglas Durst and Anthony Malkin, both New York developers, took out full-page ads in several New York City daily newspapers outlining recommendations of their Continuing Committee for a Reasonable World Trade Center. They called for a full reconsideration of plans for the Freedom Tower, which they described as poorly planned, though they also recommended continuing work on the foundation of the structure for possible use by a future design. Both developers build office properties that could face competition for tenants from a completed Freedom Tower.

Citigroup Building Heads to Fit-Out

Construction of a new 14-story office tower for Citigroup in the Long Island City section of Queens is heading toward completion with the award of a major interior fit-out package. The new structure stands next to a 48-story tower that Citigroup built near the East River 20 years ago.

Citigroup had selected New York's Turner Construction as construction manager for the $290 million tower and earlier this year announced Turner would also lead the fit-out.

Construction on the new tower began in 2005. Now, work continues on the 490,000-sq-ft interior fit-out, including a data center, 300-seat auditorium, and dining facility.

Citigroup is seeking Leadership in Energy and Environmental Design silver-level certification, with features such as reduced water usage and more waste recycling. Construction is expected to be complete in October.

Landmark Downtown Building Transformed Again

A $40 million conversion from rental to condominium residential units is wrapping up in the heart of downtown Manhattan's Financial District in what was once known as America's largest and most valuable office building.

Known as the Exchange at 25 Broad Street, the building is being restored to its turn-of-the-century heyday by Swig Equities, a New York-based developer. Originally designed by Clinton & Russell as a 21-story, 565,000-sq-ft Italian Renaissance Revival tower and called the Broad Exchange Building when it opened in 1902, the structure was designated a landmark in 2000, says a Swig spokesman.

Construction to create the 346 luxury units began in August with Scorcia and Diana of Floral Park, N.Y., as contractor, and work was scheduled to finish this spring. The conversion to condominiums has involved other improvements, such as the addition of a health club, day spa, resident lounge, dining room with catering kitchen, private screening room, viewing garden, and business resource center.

In 1997, the building's name became the Exchange at 25 Broad Street and its use went from commercial to residential, transforming office space into one-, two-, and three-bedroom rental units. The building also has about 21,400 sq ft of retail and commercial space and 6,800 sq ft of office space.

Yonkers Rehab Creates Condos

Construction work is wrapping up this spring on Riverwatch, a luxury condominium complex overlooking the Hudson River in Yonkers. The 15-story building at 1020 Warburton Ave. is being converted from a rental property.

Riverwatch has 63 studio, one-, and two-bedroom units ranging in size from 670 sq ft. to 1,700 sq ft, as well as two penthouses. It is nearly sold out at prices set at $280,000 for a studio, $362,000 for a one-bedroom unit, $566,000 for two-bedroom units, and $1.13 million for a penthouse, according to Ginsburg Development of Valhalla, N.Y., the developer.

Primary work on the $40 million project, such as renovating the lobby, hallways, and models, and redoing the landscaping, began in July 2006, and most of that work was completed over the winter. Individual units are being renovated as they are offered for sale.

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