KKR Looking to Invest at Related’s Hudson Yards
Lauren Elkies Schram May 11, 2015, 4:20 p.m.
After nearly two decades at Sheldon Solow’s 9 West 57th Street, private equity giant Kohlberg Kravis Roberts is looking to make a move to an office condominium at Hudson Yards, Commercial Observer has learned.
The global investment firm occupies 161,000 square feet at 9 West 57th Street on floors 10, 11, 14, 16, 41 and 42, according to CoStar Group, a space that will be small in comparison with the 400,000-square-foot condo it is considering buying in Related Companies and Oxford Properties Group‘s 17-million-square-foot, 28-acre mixed-used development emerging on the West Side of Manhattan.
Related and Oxford Properties are “going to take advantage there in the strong interest in the investor market and look to monetize and take some of the risk off of the table for some of the opportunities they are marketing,” a source with knowledge of the situation said. “I’m sure it’s not a [financial] stretch to get the space,” he added, noting that KKR likely pays around $180 per square foot at the Solow building.
KKR would be joining Coach, Inc., which nabbed a 740,00-square-foot condo at 10 Hudson Yards at 501 West 34th Street for its global corporate headquarters. The New York Post reported the cost could be around $70 per square foot. French cosmetics and beauty company L’Oréal and enterprise software giant SAP leased space in the 1.7-million-square-foot office tower as did grocery chain Fairway. That is just one of three office buildings being erected at the site. Time Warner, Inc. is heading to 30 Hudson Yards.
Related declined to comment. CBRE is marketing Hudson Yards for Related. CBRE didn’t respond to a request for comment and nor did KKR.