SAP Inks 115,000 SF Lease at Hudson Yards
SAP has inked a lease for 115,000 square feet of space at the South Tower of Hudson Yards, the developers of the 15-million-square-foot project on the far west side of Manhattan announced yesterday.
The announcement came along with news that L’Oréal leased 402,000 square feet for their U.S. corporate headquarters at the building, bringing the LEED Gold South Tower to more than 80 percent occupancy. Sources said the deals are for 15 years.
The companies join Coach, which agreed to pay a reported $750 million for its 740,000-square-foot global corporate headquarters in the tower in late 2011, after what Related’s president on the project, Jay Cross, called a three-year negation process.
“We are thrilled that global beauty and software powerhouses L’Oréal and SAP, along with Coach, Inc., will be locating at Hudson Yards,” said Stephen Ross, Related Companies’ Chairman, in a prepared statement. “With construction already underway, we look forward to continuing to implement our ambitious vision for the defining development of the 21st Century and the new heart of New York.”
Related is developing the project with partner Oxford Properties Group, with the first phase, the Eastern Yards, comprising roughly six million square feet of mixed-use development at an estimated cost of $6 billion.
The South Tower, designed by Pedersen Fox Associates, is a 1.7-million-square-foot, nearly 900-foot-tall office building with ground floor retail space and 15,000 square feet of terrace space on three levels, slated for occupancy in 2015.
Oxford CEO Blake Hutcheson called the leases “a testament to the momentum behind the development and this great period of growth in New York City,” in a prepared statement.
L’Oréal USA is relocating its corporate headquarters, while software company SAP creates its New York City flagship.
The 26-acre site will include more than 6 million square feet of commercial space, 750,000 square feet of retail space, about 5,000 residences, a new school, and a luxury hotel. It is located near the West Side Highway, the Lincoln Tunnel, and the extension of the No. 7 subway line, scheduled to open in 2014, will connect to the heart of the neighborhood.
The developers also announced that they have closed on nearly $1.4 billion in equity investments and debt financing for Hudson Yards from a consortium of investors and lenders — including Starwood Property Trust, as first reported in the Mortgage Observer Weekly — who will fund the South Tower.
Bob Alexander, Howard Fiddle, Rob Stillman, Len DiMicelli, Zakery Snider and Ryan Alexander of CBRE represented Related and Oxford.
Alexander Chudnoff and Scott Vinett of Jones Lang LaSalle represented SAP along with Steve Andrews and Christopher Joyner of Fischer & Company.
The brokers either did not return calls seeking comment or were unavailable for comment.