Global investment management firm BlackRock will pay landlords Related Companies and Oxford Property Group a base rent of $1.25 billion over 20 years for its lease at 50 Hudson Yards, according to the equity giant’s public filings today.
BlackRock “entered into an agreement” yesterday to lease 847,000 square feet at the building, which will be located at the intersection of 10th Avenue and West 33rd Street, with the lease expected to begin on May 1, 2023, the filings indicate.
BlackRock is moving from 55 East 52nd Street between Park and Madison Avenues.
In the deal, BlackRock will pay a rent of $50.8 million annually for the first five years. The rent will increase every five years to $58.4 million, then $66.1 million and then $73.7 million. BlackRock will also foot the bills for operating expenses and property taxes.
A spokeswoman for Related did not immediately return a request for comment and nor did a spokesman for BlackRock.
Commercial Observer reported last December that BlackRock pledged to take 850,000 square feet across 15 floors of the 2.9-million-square-foot property.
BlackRock will also receive tax credits worth $25 million, because it is keeping 2,672 jobs in Manhattan and promises to create another 700, The New York Times reported last year.
Reuters first reported the news of BlackRock’s filings today.
The 985-foot tall, 58-story 50 Hudson Yards, which is designed by Foster + Partners, is expected to be completed in 2022.
In a statement last year, Rob Goldstein, the chief operating officer of BlackRock, said: “We’re proud to have our name on the marquee of our future home, 50 Hudson Yards. This state-of-the-art building will be equipped with the design, technology and resources to attract and retain the best talent in the industry to serve our clients.”