General Growth Puts South Street Seaport Up for Sale

Indebted REIT General Growth Properties has hired a London-based brokerage to market the South Street Seaport, along with two other retail hubs in Boston and Baltimore.

General Growth, the nation's second-largest mall owner, had planned to redeveloped the Seaport. A large amount of debt accumulated during the real estate boom--as well as local opposition over changing the landmark--stymied those plans, which included a boutique hotel and a retail complex.

More Observer coverage of General Growth here. The REIT is also, for now, the lead developer on a major East 125th Street mixed-use, mixed-income complex.