Seaport restaurants and concert venues power comeback

Reprinted from Crains New York Business, August 2022

Millennial New Yorkers, tourists and the nonfungible-token community are opening their wallets for shows, food and parties at Pier 17, driving a comeback for the in-progress redevelopment of the downtown neighborhood around the South Street Seaport.

Renamed by developer The Howard Hughes Corp. as the Seaport, the group of commercial buildings brought in $27.1 million for the three months that ended June 30, according to filings from the company, which is headquartered in The Woodlands, Texas.

That is more than double the revenue for the second quarter of 2021, when the city’s Covid-19 recovery was just getting started.

It is still not a complete comeback, though. The Seaport reported a loss of $3.7 million during the second quarter. 

Residents of the area are also contributing to the comeback, according to the Corp. The neighborhood has a high median household income — $214,000 on average — and 43% of residents are in the millennial generation, ages 20 to 36— a group fine with spending $4 for coffee and dining at the area’s restaurants including Malibu Farm, Sunday in Brooklyn and Momofuku Ssäm Bar.

The Hughes Corp. planted the seeds of the Seaport’s strong quarter during the summer of 2020. That’s when the Rooftop at Pier 17 transformed its space into 10-foot squares of grass—temporary semiprivate spaces available to rent for the day.

“It encouraged people to come out of their apartments, to trust venues and to be around other people again,” said Andrew Schwartz, senior vice president for creative and marketing at The Rooftop. The venture, called The Greens, ended up attracting 42,000 guests during the summer.

The strong quarter comes on the heels of a slower first three months of the year.  In part because of Covid-19 concerns, the Seaport reported a loss of $8.3 million in the first quarter.

The Seaport’s Fulton Market building has been fully leased since mid-July, executives said.  That is also when fashion retailer Alexander Wang leased a 46,000-square-foot space.  Meanwhile, the Tin Building, a culinary marketplace helmed by chef Jean-Georges Vongerichten, with several to-go and full-service restaurants, opened at the beginning of this month with limited hours and service. Its full launch, pushed back because of hiring constraints, is scheduled for later this quarter.