Oxford Credits Related for Neiman Marcus Deal [Updated]
The three-floor, 250,000-square-foot Neiman Marcus store that Hudson Yards partners Related Cos. and Oxford Properties Group announced for the Shops at Hudson Yards complex last week showcases the strength of the Related-led arrangement between the two companies, an executive at Oxford told Commercial Observer.
Related oversaw the deal that’s the first tenant the partners have announced for the 1-million-square-foot shopping center, said Dean Shapiro, the senior vice president of investment at the Toronto company that is the real estate division of the Ontario Municipal Employees Retirement System.
“It’s fair to say that Related is the lead and was the lead in these negotiations,” Mr. Shapiro said of the talks with the Dallas-based department store chain. “We certainly follow along and we weigh in appropriately. But we have lots of confidence in Related.”
Related and Oxford control a 99-year lease with the Metropolitan Transportation Authority that has purchase options on the 28-acre Hudson Yards site where they’re planning 17 million square feet of residential and commercial development. The anchor tenant arrangement at the shopping center that will feature an observation deck will suit Neiman Marcus well, said Oxford President and CEO Blake Hutcheson.
“Neiman Marcus has built their success through an unwavering commitment to their customers in all aspects of their business,” said Mr. Hutcheson in a prepared statement. “Opening their first ever New York City store at the Shops at Hudson Yards once again reflects this commitment, and will no doubt provide customers with an unparalleled experience in physical form, merchandise selection and customer service.”
Oxford opened its US office in 2010 and has generated headlines by growing its footprint in the city with purchase deals for properties like 650 Madison Avenue, 450 Park Avenue and the Olympic Tower. The company boasts $20 billion in assets under management in Canada and £2 billion in European investments, and it will develop and manage a $10 billion American portfolio by 2018, according to its website.
“Oxford has been a tremendous partner on Hudson Yards and we have worked closely with them through every step of the process,” said a Related spokesperson in an email. “They bring an over fifty year track record of success and global reach and share our vision for the creation of the new heart of New York.”
Update: This story has been updated with comments from a Related spokesperson.