Larry Silverstein is still waiting a full construction loan, but loan or no loan, the developer has given the word and work has resumed on top of the seven-story podium base of his 3 World Trade Center, The Real Deal reported.
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In late July, the Port Authority’s board agreed to release $159 million in insurance proceeds that had been tied to a third Silverstein tower planned for the site.
The board “frees up a portion of our insurance proceeds to be used for construction of 3 WTC, ” Silverstein said in a statement, “and permits us to immediately jump-start vertical construction, employ 3, 000 workers and stay on target for an early 2018 completion.”
Silverstein’s deal with the Port Authority lets him tap $50 million of a total of the $159 million in insurance proceeds, and so he’s now moving construction beyond the eight stories of the 80-story tower planned for the site.
He has to keep the rest of the money in a reserve fund.
The tower, designed by Richard Rogers, is expected to be completed in 2018, according to Silverstein.
One new tenant, a media company named GroupM, has signed a lease for 550, 000 square feet in the future, 2.3 million-square-foot building. And the NY Times reported that MediaMath, a marketing company, will be signing for another 100, 000 square feet.
This raises the building’s expected occupancy to 22 percent. The Times notes that lenders usually require that 40 percent or 50 percent of a building be leased before they provide funding.
But this is Larry Silverstein’s 3 WTC, for heaven’s sake.