Related Companies and Oxford Properties Group Raise $1.4 Billion for Largescale Development, 47-Story Tower at 10th Ave. and West 30th St. Under Construction and Slated for 2015 Occupancy
|Image: Kohn Pedersen Fox Associates|
Having secured new lease commitments from L’Oréal USA for an initial 402,000 square feet and tech firm SAP for a total of 115,000 square feet on the top four floors of its first office tower planned in the 26-acre Hudson Yards development, Related Companies and Oxford Properties Group have lined up nearly $1.4 billion in equity investments and debt financing to fund the construction of the 47-story South Tower.
In addition to L’Oréal and SAP, leading fashion retailer Coach Inc. purchased a 740,000-square-foot condominium interest in the new building for its corporate headquarters. The 1.7 million-square-foot South Tower currently under construction at 10th Ave. and West 30th Street is now more than 80% committed, according to the developers.
Equity investors in the first phase of the Hudson Yards include Coach, Inc., Related, Oxford, institutional investors advised by J.P. Morgan Asset Management, and an undisclosed sovereign wealth fund. Construction financing is being provided by a syndicate led by Starwood Property Trust, which includes the United Brotherhood of Carpenters and Joiners and Oxford Properties Group.
Designed by Kohn Pedersen Fox Associates (KPF) with Tutor Perini selected as the general contractor, the building is expected to be ready for occupancy in 2015. Among the building's notable design features is the integration of the High Line, a section of the former elevated New York Central Railroad which has been transformed into a pedestrian park/walkway, will pass through the structure of the building and connect to the project's large public plaza.
A CBRE leasing team headed by Stephen Siegel represented L’Oréal USA and SAP was represented jointly by Dallas-based Fischer and Co. and Jones Lang LaSalle. A separate team from CBRE led by Bob Alexander is marketing the listing.
Related and Oxford are also securing additional equity investments to fund the construction of the first residential tower planned in the Hudson Yards development. The new building, planned for West 30th and 11th Ave., will be a hybrid rental and condominium tower.
Hudson Yards, which qualifies as the largest private development undertaken in New York City since Rockefeller Center, is the single largest piece of undeveloped property in Manhattan. Its ambitious goal is to transform the former industrial area into a new center of commerce and community and a model of sustainability.