Wells Fargo Buying Neiman Marcus’ Former Hudson Yard Store for $550M
The bank plans to convert the 400,000-SF retail space into offices
By Nicholas Rizzi September 28, 2023 11:45 am
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Wells Fargo will buy Neiman Marcus’ former Hudson Yards flagship store for $550 million with plans to turn it into offices, sources with knowledge of the deal confirmed.
The bank is in talks to buy 400,000 square feet formerly occupied by Neiman Marcus in The Shops & Restaurants at Hudson Yards at 20 Hudson Yards from developers Related Companies and Oxford Properties Group, Bloomberg first reported. The deal should close soon.
Newmark (NMRK)’s Adam Spies and Doug Harmon are brokering the deal but declined to comment.
Spokespeople for Related and Wells Fargo also declined to comment.
Neiman Marcus’ time as a tenant in Hudson Yards was relatively brief. The department store shuttered its outpost in 2020 a little more than a year after it opened as part of its bankruptcy proceedings.
Related then began marketing the space, along with about 40 percent of The Shops & Restaurants at Hudson Yards, to office tenants instead of retailers.
“We have talked to all of our tenants and as many others as possible,” Related CEO Jeff Blau previously told Commercial Observer. “The conversion into office is just incredible.”
Meta was reportedly in talks for the space, but that deal never finalized and the social media giant later cut about 250,000 square feet from its 1.9 million-square-foot Hudson Yards office portfolio.
But Wells Fargo is no stranger to shopping at Hudson Yards. The bank previously bought about 500,000 square feet of office condominium space at 30 Hudson Yards.
It will be keeping that office and adding 20 Hudson Yards to its office footprint, a source said.
With additional reporting by Cathy Cunningham.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
