$1.3 Billion Bond Sale Expected Next Year: Real Estate Mogul
Concerned over a volatile bond market, Larry Silverstein, president and CEO of the Manhattan-based real estate development and investment firm Silverstein Properties, has postponed a planned sale of $1.3 billion in tax-exempt Liberty Bonds to finance one of its three buildings under construction at the World Trade Center site.
"We got a bond market that it in a state of chaos, very significant supply, which leads to volatility of rate and as a result I think the decision is to watch it on a day-to-day basis", Silverstein told CNBC's "The Strategy Session" on Wednesday.
"If it's not done in the next few days, then my sense is it will be done early next year," he said.
"There is a very strong chance that sometime in the first quarter, usually shortly after the first of the year, the taxes and market settles down and that should be the ideal time to do this," Silverstein said.
Silverstein is best known for the largest real estate transaction in New York history, signing a 99-year lease on the 10.6 million square feet World Trade Center for $3.25 billion. It was destroyed six weeks later in the terrorist attacks on September 11, 2001.
He is currently rebuilding the office component for the World Trade Center site, which is a $7 billion project. In 2006, designs were unveiled for three new office towers on the property that will be developed by his firm.
In addition, Silverstein owns and manages some of the most successful and high-profile commercial properties in New York City, including: 120 Wall Street, 529 Fifth Avenue and 570 Seventh Avenue.
"What you see in New York is a rapidly improving market, both for market space and rental housing," he said.
"What you've got is significant amount of capital coming to the marketplace, looking for hard assets, especially because there's a concern ultimately for inflation over the longer term," Silverstein said.
"Hard assets, real estate particularly, do well in those circumstances," Silverstein said.
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