Hudson Square Office Asset Hits the Market for Potential Luxury Apartment Play
By Andrew Coen October 19, 2023 2:48 pm
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An office property in Manhattan’s Hudson Square section is hitting the market for the first time in nearly a century as a potential covered land play that could include luxury apartments, Commercial Observer has learned.
CBRE is marketing the sale of the 1930-built 185 Varick Street as a “generational development opportunity” in the expanding neighborhood — boosted by Disney’s 1.2 million-square-foot headquarters and Google’s 1.3 million-square-foot office, according to an offering memorandum obtained by CO.
No asking price was provided, but sources familiar with the deal said it could fetch in the mid-$200 per zoning floor area range. The building is owned by the Federbush family, according to previous CO reporting on the property.
Officials for the Federbush family and CBRE (CBRE) could not be immediately reached for comment. CBRE’s Doug Middleton and Dan Kaplan are leading the marketing efforts.
The property provides 181,296 square feet of zoning floor area with a “flexible zoning profile” that allows future owners to develop luxury residential, “trophy-quality office” or life sciences, according to the memo. It is currently leased to a number of media and technology companies, with Dish Network taking up 40 percent of the space through 2027, according to sources.
While 185 Varrick offers many potential uses, a conversion to luxury apartments or condos is most likely given the market conditions, according to a source familiar with the deal. Strong leasing at the property enables a potential developer or investor to offset carrying costs by generating “meaningful cash flow during the pre-development period.”
Andrew Coen can be reached at acoen@commercialobserver.com
