Related's Hudson Yards
Related Companies‘ Stephen Ross has reportedly selected British artist and designer Thomas Heatherwick to create the artistic center piece for the new public space at Hudson Yards.
Mr. Heatherwick, know for the Olympic cauldron at the 2012 London Games, will team with landscape architect Thomas Woltz to design the four-acre space with a large-scale artwork – Read More
First proposed in 1999 with the establishment of the nonprofit organization Friends of the High Line, the preservation and reuse of the New York Central Railroad’s West Side Line has been criticized by some as sanitizing the once gritty Meatpacking District.
First opened in 2009, the High Line stretches as far north as 30th Street and will eventually terminate at the Hudson Yards site. Though the High Line can boast a significant role in popularizing the neighborhood both with tourists and New Yorkers, it is neither the first nor only attraction to boost real estate values in the area.
Below, The Commercial Observer looks at some of the real estate landmarks and popular attractions in the vicinity.
The New York Industrial Development Agency last week approved a $328 million tax exemption for the Related Companies’ construction of the 80-story North Tower and connecting retail center at the Hudson Yards development site.
The exemption, outlined in the 2006 Hudson Yards Uniform Tax Exemption Policy, will see Related benefit from a 40 percent abatement on property taxes at the development site for four years. The taxes will then begin to phase back in through the 19th year of the abatement, according to Jonathan Gouveia, senior vice president of strategic investments at the New York City Economic Development Corp.
The annual forecast from the New York Building Congress estimates that 2013 construction spending will eclipse the peaks of 2007.
New York City Construction Outlook 2013-2015, completed with support from the New York Building Foundation and assistance from Urbanomics, estimates total construction spending will reach $31.5 billion this year, greater than the previous high of Read More
The regional chain Fairway is opening a store in downtown Manhattan.
The 52,242-square-foot retail space at 255 Greenwich Street will be the home of the company’s sixth location in Manhattan and first below 14th Street. Fairway has recently been in expansion mode and has taken an anchor tenancy at Hudson Yards on the Far West Side, slated to open in 2015.
Partner & Chairman of the Real Estate Department
In 2012 and the beginning of 2013, your firm, with partners Stephen Lefkowitz and Tal Galomb, represented Related Companies in its purchase of Hudson Yards from the MTA, and you represented Coach, which purchased 740,00 square feet of the first building to be constructed there. Was that a complicated deal with all of the parties that were involved?
It started with Gary Barnett’s Gem Tower and Bruce Ratner’s Atlantic Yards. When credit tightened in 2009, some of the most respected New York developers had begun turning to foreign money to finance their construction projects via the U.S. Citizenship and Immigration Services’ EB-5 program. The federal program is designed to provide permanent residency to foreigners who invest at least $500,000 in job-creating projects. Of late, with the banking sector increasingly willing to finance projects but with the loan-to-cost of their loans languishing in the 60 percent to 65 percent range, EB-5 funding—for which interest rates are usually in the one-digit range—is becoming an increasingly popular alternative to costlier mezzanine financing, sources told Mortgage Observer.
A survey of more than 100 prominent commercial real estate machers states that Downtown Brooklyn is the neighborhood to watch, beating out heavy-hitters including Hudson Yards as the city’s Most Likely to Succeed.
“This could be another ‘prestige’ breakthrough for Brooklyn,” William H. Jennings, partner-in-charge of Marks Paneth & Shron, said in a prepared statement. “Many people already think it’s much ‘cooler’ to live in Brooklyn than Manhattan. It may soon be the ‘hot’ place to office.”
In June, the Moinian Group announced its plans for 3 Hudson Boulevard, a 1,000-foot-tall, 1.8 million-square-foot tower between West 34th and West 35th Streets in Hudson Yards. Designed by Dan Kaplan of FXFOWLE, the property will include 1.5 million square feet of office space, 22,000 square feet of retail and possibly as much as 300,000 square feet of residential space. The man behind the Moinian Group project is Oskar Brecher, the company’s vice president and director of development. Across the United States, Mr. Brecher and his team are involved with nearly 10 million square feet of development. The Commercial Observer spoke with Mr. Brecher at his firm’s 3 Columbus Circle office, where he described the 3 Hudson Boulevard project envisioned by the Moinan Group, headed by CEO Joseph Moinian.
Fairway Market, the upscale grocer with more than a dozen locations across the tristate area, has inked a 46,000-square-foot deal at the center of the highly anticipated Hudson Yards complex.
The new location, Fairway’s 14th, will open at the corner of West 30th Street and 10th Avenue in what is being referred to as the South Tower of Hudson Yards. It’s slated to open in 2015, according to Crain’s New York, which first reported the news last week.
With annual revenues totaling $800 million, the grocer has been expanding rapidly in recent years. The company initially took space outside the city with markets opening in Paramus, New Jersey; Stamford, Connecticut; and Pelham Manor in Westchester.
Fairway also opened locations on the Upper East Side and Queens in 2011, Kips Bay in 2012, and most recently Chelsea on the Avenue of the Americas in July.
Related Hudson Yards
Related Companies has not bid on Sotheby’s Upper East Side headquarters as part of a deal to bring the international auction house to Hudson Yards, a source familiar with the matter told The Commercial Observer.
Earlier reports suggested Related was eyeing a bid for the property at 1334 York Avenue. The reported deal, a 1031 tax-free exchange, would see Sotheby’s buy or lease a significant portion of the 750,000-square-foot retail podium connecting the first two Hudson Yards office towers, according to a story yesterday in the New York Post.
Dominated last year by smaller middle-market transactions, New York’s investment sales market has welcomed the return of large institutional transactions in 2013, while leasing activity in the first half of the year also experienced positive year-over-year growth.
With 10 transactions in excess of $400 million under contract through the second quarter, 2013 is set to be the single most active year for large deals since the Great Recession began in early 2008, according to midyear statistics from Cushman & Wakefield.
on the waterfront
A new report by a Columbia University think tank warns that the one million additional residents expected to hit the city by 2030 will have nowhere to live if the city’s waterfront neighborhoods aren’t further developed to accommodate them.
The Center for Urban Real Estate report’s authors would pack people into smaller areas than the Read More
Go West, Young Man
The Moinian Group this afternoon offered details about the upcoming 3 Hudson Boulevard, a 1,000-foot tall, 1.8-million-square-foot tower on 11th Avenue between West 34th and West 35th Streets in the thick of the Hudson Yards development.
“For more than two decades The Moinian Group has believed that the new West Side would emerge as Manhattan’s most sought-after neighborhood,” Joseph Moinian, founder of The Moinian Group, said in a prepared statement. “Our new mixed-use building at 3 Hudson Boulevard will stand as the pinnacle of elegance along the new Hudson Boulevard & Park. With 3 Hudson Boulevard, you are going to see something truly spectacular.”
In 2005, CBRE broker Mary Ann Tighe told The New York Times that there had never been a “phenomenon quite like Bob Alexander.” What’s more phenomenal is that the 58-year-old chairman of the firm’s tristate region still ranks among its top brokers, having landed some of the city’s highest-profile deals this year as a lead broker representing Read More