New York Mayor Michael Bloomberg was on hand Tuesday as Related Companies broke ground on the first of what will be a string of buildings in the Hudson Yards development on Manhattan’s midtown west.
Related founder – and Miami Dolphins owner – Stephen Ross, called the project the “most ambitious construction project in the history of New York.” The company is planning a 47-story, 1.7 million square foot tower which is expected to cost $1 billion, according to reports.
Leather goods retailer, Coach, has committed to purchase about 750,000 square feet in the tower, with the option of taking another 100,000. “Hudson Yards will soon be home to some of the world’s most renowned brands,” Mr. Ross said to a crowd of onlookers assembled in a large tent at the construction site near the corner of 30th street and Eleventh Avenue.
In addition to becoming the new global headquarters of Coach, Ross said the complex would be the future home of Related Companies, “as well as my private residence.”
“I’m excited to see the Hudson yards project launched,” said CBRE CEO, Mary Ann Tighe, who represented Coach in the deal to become the anchor tenant of Related’s South Tower. “I would feel even more excited if we were at closure with the coach deal.” Related spokesperson, Joanna Rose, said the deal would close in the “coming weeks” and said she could not provide a more detailed time frame.
Though Coach is taking such a significant portion of the office space in the building, and is the anchor tenant, Ms. Tighe said she does not think the South Tower will be called The Coach Building, rather it will have a building address. She also said she fully expects other substantial tenants will buy space in the tower.
The 26-acre development is part of a trend of prosperity for the west side of midtown, which has increased its presence in the commercial real estate market over the past 20 years. “Every place you turn down here there’s another crane, another boring machine doing its work,” said Mr. Bloomberg
When completed, the Hudson Yards complex will feature a number of mixed use towers – residential and office – as well as retail centers, a park, a dual cultural center – event venue and a playground. It will feature 13 million square feet, including 6 million square feet of commercial space. The complex is bordered on its south side by the High Line elevated walkway. Construction of the High Line’s third and final phase will begin in September, Mr. Bloomberg said.