Catching Up With Hines

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Could you elaborate on some of the architectural details of the building?

This is architect Pei Cobb’s second commercial building in Manhattan. The prior one was 200 West Street, the Goldman Sachs building. To be clear, we think there are many things that differentiate the building. The opportunity to be a major tenant, the opportunity to, in many ways, identify through branding with the signage opportunities.

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It has the kind of infrastructure you would associate with trading operations or higher-density occupancy. Obviously, those floors will look directly out on Bryant Park, and 100 percent of the users on those floors will have visual connectivity with each other. The nature of the space is very much in keeping with the evolving requirements of the modern workplace: collaboration and higher density.

The ceilings are 10 feet high. The module on the exterior wall is also 10 feet. There is more light and deeper penetration of that light.
There will be an outdoor terrace on the 10th floor as well as a rooftop penthouse with outdoor space. We really took the infrastructure and combined it with aspects of residential projects that had the most appeal, the role of daylight and outdoor space.

We also have plans for a restaurant on the ground floor. We think a high-end destination restaurant is going to be very appealing facing Bryant Park.

What types of tenants are you targeting?

The tenants most interested are those interested in a new and better workplace. Users across the spectrum of technology, law, financial services and professional services—all those user types are speaking with us. We are not targeting by industry, I should be clear about that.

Users will recognize the appeal of Bryant Park for their work force. The location is equidistant from Penn Station and Grand Central and is well served by the subway system. The location also puts it right at the line where it’s convenient to the residential neighborhoods both south and north. It is also convenient to commuters. To many users the central location will appeal.

Central Park, for the most part, is dominated by residential buildings. Bryant Park now almost has a square around it. It is the open space that the Midtown market uses most intensively. I would think it would be a big recruiting advantage.

What is the status of the leasing process?

We are in active discussions with a number of prospects. We are hopeful, but that is all I can say. The product has been well received.

What is the timeline for construction and leasing?

We expect to get a certificate of occupancy in February of 2015, on budget. Most of this year will be dominated by work below grade, getting out of the hole and establishing the concrete core. We are expecting by year-end that the major trades, the work below grade, will be complete. The core will be well on its way, and by year-end we hope to start the structural steel erection. All the other trades, the installation of systems such as elevators, will follow shortly after. We have a very good sequence of work all through 2014.

What is your outlook for the New York market?

We have other projects in New York. Largely, we experience the world through the projects we are doing. At 56 Leonard, where we are the third-party developer, we have completed the contract, closed the loan and had an extraordinary level of sales activity, close to 50 percent. Obviously, we are very encouraged by high-end residential.

We are doing everything we can to finalize financing on the MoMa Tower so we can move that along as well. We expect high-end residential to continue to be a place we look for opportunity.

New York is a favored market. You look at the favored few and New York is at the head of that. Right now, we are more focused on development than acquisition, but I would expect, given the performance of assets, we will want to diversify and do more.