Related Nabs Final Piece of Land for 50 Hudson Yards Via $60.8M Ground Lease
By Terence Cullen and Lauren Elkies Schram December 14, 2016 5:10 pm
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Related Companies has tied up a long-term ground lease for a parcel of land it needs to construct 50 Hudson Yards—the 2.9-million-square-foot tower that BlackRock is slated to anchor.
The firm, which is co-developing Hudson Yards with Oxford Properties Group, closed on a 75-year ground lease with 503 West 33rd Street Associates Inc. for 503-505 West 33rd Street, according to property records filed with the city last week. The site between 10th and 11th Avenues is currently home to a two-story, 8,945-square-foot building, according to CoStar Group. Related will pay $60.8 million in rent for the plot, filings indicate.
This is the last of the sites Related requires to build the 58-story, full-block tower at 50 Hudson Yards. The developer has been assembling neighboring sites over the last seven years to the tune of $200 million, as Crain’s New York Business reported in October 2015. One of the final pieces was the January purchase of 427 10th Avenue between West 33rd and West 34th Streets for $152.3 million, as Commercial Observer reported at the time. The site was formerly home to a McDonald’s, which shuttered in fall 2015 but has not yet been demolished.
The 503-505 West 33rd Street ground lease deal, which closed on Nov. 28, closed just before BlackRock declared it would relocate to 850,000 square feet at 50 Hudson Yards, which is expected to be completed in 2022. The company signed a letter of intent (a lease has not been finalized) and will move 2,672 employees as well as add another 700 to its roster.
William A. D’Alessandro, who leads the ownership entity that picked up the property in April 1999, wasn’t immediately reachable for comment, and a Related spokeswoman declined to comment.
