Related Cos.’ 1.4 million-square-foot office tower at Hudson Yards — the largest private development in U.S. history — has secured $2.45 billion in financing and equity investment as demand for top-tier office space outpaces new supply.
The financing includes a $1.6 billion construction loan fully underwritten, structured and led by Wells Fargo, Bank of America and Standard Chartered, as well as equity from institutional investors, according to Related and development partner Oxford Properties. The loan is the biggest of its kind in New York since 2020, an Oxford executive said.
Accounting and consulting giant Deloitte signed a lease last year for more than 800,000 square feet at the property; owners often leverage leasing commitments when seeking equity and debt financing. Demand for top-tier office space led an office rebound in Manhattan to reach a “watershed moment” last year as total volume rose to its highest since 2019, Colliers said.
Related broke ground last July on the 72-story 70 Hudson Yards project located on Hudson Boulevard and 35th Street. Vertical construction on the building, with its foundations nearing completion, is set to start early this year, Related and Oxford said. Deloitte will be moving from the iconic 30 Rockefeller Plaza in Midtown Manhattan in what Related and Oxford described as the largest tenant relocation in New York since 2020.
Deloitte will occupy floors 16 to 45 at 70 Hudson Yards, according to CoStar data.
The development team said move-ins are expected in late 2028. The overall Hudson Yards district is widely regarded as the largest private development, based on investment value, in U.S. history.
Leasing for the uppermost levels of the tower, 550,000 square feet of dedicated space with private outdoor terraces and a floor of exclusive club amenities, will begin in 2026, the development partners said.
“New York City is extraordinary in its ability to attract the world’s top talent and, as a result, we are experiencing equally extraordinary demand for Class-A office,” Jeff Blau, CEO of Related, said in the statement.
Largest loan since 2020
The property is the first major Manhattan ground-up office development to be unveiled in more than five years, Oxford’s global head of development, Dean Shapiro, said.
“Securing full equity and the largest construction loan in New York since 2020, on attractive terms, demonstrates the growing global demand from sophisticated investors and lenders of capital into first class office product like 70 Hudson Yards,” Shapiro said in a statement. He added that 70 Hudson Yards, being the first major new office property to be built since 2020, will give it a “first mover advantage.”
“The demand on the capital side of the premium office market is beginning to catch up with the ongoing demand from occupiers for best-in-class office space," he said in the statement.
Designed by Gensler and Roger Ferris + Partners, with interiors by luxury hospitality designer INC, 70 Hudson Yards is adjacent to a No. 7 train subway entrance and near the Penn Station transit hub. It will feature “expansive” floor plates, large outdoor terraces across multiple levels and views of the Hudson River and Manhattan skyline, the development team said. The property also will feature an amenity floor with a private dining room and event space for more than 200 guests.
Existing office towers at the mixed-use Hudson Yards complex have already commanded top-dollar rents and attracted a who’s who list of major office tenants and occupiers, including Coach parent Tapestry, investment giants BlackRock and KKR, and Deloitte rival SAP.
The 50 Hudson Yards building, for instance, ranks among New York’s major office towers that have secured the biggest number of lease commitments at more than $100 per square foot. It’s benefiting from well-resourced tenants’ appetite for top-tier properties against limited supply. That has led to what some major office owners described as a landlords’ market.
A case in point, Manhattan's trophy buildings saw availability tighten to 3.4% in the fourth quarter, driving asking rents up 12.1% to $191.02 per square foot, according to a Savills report released Monday.
Oxford Properties, Related’s partner on 70 Hudson Yards, is the real estate arm of the Ontario Municipal Employees Retirement System based in Toronto.