SAP Snags Additional 31,000 SF at Hudson Yards
Al Barbarino July 10, 2013, 1:29 p.m.
SAP America, Inc. has signed a 16-year lease for an additional 30,714 square feet of space at Related Companies’ South Tower at Hudson Yards, The Commercial Observer has learned.
The company leased the top four floors – 44 through 47 – back in April and now adds the entire 43rd floor, bringing the company’s total occupancy to 144,272 square feet, sources said.
The original announcement in April of SAP’s move to the Yards came along with news that L’Oréal had concurrently leased 402,000 square feet for their U.S. corporate headquarters at the building.
Coach agreed to pay a reported $750 million for its 740,000-square-foot global corporate headquarters in the South Tower in late 2011, after what Related’s president on the project, Jay Cross, called a three-year negation process.
Then, this month, reports continued to swirl that Time Warner would likely make the leap to another Related tower that’s under construction at the site.
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.
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.
Alexander Chudnoff and Scott Vinett of Jones Lang LaSalle represented SAP in the expansion. Robert Alexander, Howard Fiddle, Robert Stillman and Leonard DiMicelli of CBRE represented Related. The brokers were not available for immediate comment.