Manhattan's Newest Neighborhood Will Get Major Media Anchor In Long Expected Transaction
In the latest example of foreign capital’s willingness to swoop in to pick off U.S. trophy assets, funds from Singapore and United Arab Emirates have joined Related Cos. in paying $1.3 billion for Time Warner Center, a 1.1 million-square-foot office property in Manhattan.
The investment also includes a huge vote of confidence in the prospects of Hudson Yards. Media conglomerate Time Warner Inc. announced it will lease back space from the Related venture until early 2019 before moving its corporate headquarters and 5,000 employees, along with its HBO, Turner Broadcasting and Warner Bros. businesses, to the emerging redevelopment on the Far West Side of Manhattan.
Time Warner has made "an initial investment" in acquiring more than 1 million square feet of available commercial space in 30 Hudson Yards, an office development by Related and Oxford Properties Group approved for construction at the southwest corner of 10th Avenue and 33rd Street. All parties have signed an initial development agreement for 30 Hudson and expect to complete final building plans by the first half of this year, and Time Warner and its businesses plans to occupy the new space at the end of 2018.
The long-anticipated Time Warner Center purchase by the venture that includes Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and Singapore-based GIC works out to about $1,182 per square foot. Eastdil Secured represented Time Warner on the sale of its office space, while Studley is representing Time Warner and CBRE is representing Related and Oxford on the planned Hudson Yards headquarters acquisition.
"We see significant upside in leasing the high quality office space following Time Warner Inc.’s planned relocation to 30 Hudson Yards. We believe strong demand for this first-rate office property will translate into a stable income stream which suits GIC as a long-term investor," said Tia Miyamoto, regional head of Americas at GIC Real Estate. "Time Warner Center is one of the premier mixed-use projects in the country."
Please see CoStar Comps #2935428 for more information on this transaction.