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Disney to Spend $650 Million on Development Rights for Downtown New York Site As It Sells Upper West Side Holdings

A 99-Year Accord With Trinity Church Covers a City Block at 4 Hudson Square
July 9, 2018
In preparation for the move, Walt Disney has sold several real estate holdings on the Upper West Side along West End Avenue and Columbus Avenue to Silverstein Properties for about $1.155 billion, the landlord confirmed to CoStar news. The parcels include ABC's headquarters at 77 West 66th St. (above).



Walt Disney Co. is selling real estate holdings on the Upper West Side and plans to build its next New York headquarters to host morning talk shows and other programs at a new downtown location covering over a full city block at 4 Hudson Square in a deal that may spark increased demand for commercial real estate in the area.

Disney is paying Trinity Church Wall Street $650 million for the rights to develop the block bordered by Hudson, Varick, Van Dam and Spring Streets for 99 years. The project will house a development with 1 million square feet of space in an LEED-certified building with a maximum height of 290 feet, according to a source close to the deal.

Disney Chief Executive Rob Iger said in a statement announcing the agreement its consolidation will include Disney Streaming Services leaving Chelsea Market and the relocation of ABC News, and morning talk shows Live with Kelly and Ryan and The View. Iger said the move would attract workers, audiences and boost the profile of the neighborhood, which typically increases demand.

In preparation for the move, Walt Disney has sold several real estate holdings on the Upper West Side along West End Avenue and Columbus Avenue to Silverstein Properties for about $1.155 billion, the landlord confirmed to CoStar news. The parcels include ABC’s headquarters at 77 West 66th Street.

The West End Avenue properties span 148,000 square feet of site area and 517,000 in rentable square feet. They encompass 125 West End Avenue, 320 West 66th Street and the 64th Street Parking Lot.

The Columbus Avenue properties total 115,000 square feet of site area and 1.148 million rentable square feet. They include 149 Columbus, 147 Columbus, 77 West 66th Street, 30 West 67th Street, 47 West 66th Street and 7 West 66th Street.

Deutsche Bank holds the mortgage for the Upper West side deal, on which Silverstein took $900 million in debt.

Disney said it plans to lease back those facilities for as long as five years while the new headquarters at 4 Hudson Square is under construction.

Commercial real estate services firm Eastdil Secured advised Disney on both deals.

Trinity Church Wall Street has long been a major player in the downtown Manhattan real estate market. In 2015, the company partnered with Norges Bank in a joint venture partnership covering 11 buildings and 4.9 million square feet downtown. Proceeds from the sale were to be used to benefit the parish, according to a representative for Trinity. The church said it originally received the property in a land grant in 1705.

Please refer to CoStar Comp ID # 4370729 for additional information on this transaction.

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