HEADLINE: GEHRY LUXURY TOWER - DOWNTOWN APT. PLAN

BYLINE: WILLIAM NEUMAN

Developer Bruce Ratner plans to use high-wattage architect Frank Gehry to design a 55-story, $210 million luxury apartment tower in lower Manhattan, after signing a deal to buy the site from NYU Downtown Hospital.

Ratner recently tapped Gehry for a proposed Nets basketball stadium with an adjoining office and residential complex in Downtown Brooklyn - but while approval for that deal is still far off, the lower Manhattan project may be closer to becoming a reality.

Sources familiar with the deal said Ratner has signed a contract with the hospital to pay in excess of $85 million for a parking lot between Spruce and Beekman streets, across the street from Pace University.

The deal also includes some 40,000 square feet of rent-free office or clinic space for the hospital and 400,000 square feet of dorms and classrooms for Pace.

Last February, the developer's Forest City Ratner Cos. received a preliminary authorization from the city's Housing Development Corp. for $131.4 million in tax-free Liberty Bonds to cover the land purchase and part of the construction costs, according to agency spokeswoman Tracy Paurowski.

Gehry is listed as the architect in HDC documents, which estimate the total cost of the project at $210 million.

The sale is expected to be finalized by summer.

In a recent meeting with members of Community Board 1, Ratner said he will use Gehry as the architect, and he has also committed to use Gehry in talks with hospital and city officials.

A Ratner representative, who spoke on condition of anonymity, confirmed that Gehry will design the building.