The Real Deal New York

Moinian’s Hudson Yards office tower to cost $1.6 billion: filing

Total development costs work out to $916 per square foot

December 24, 2014 03:16PM
By Rich Bockmann

From left: Joe Moinian and 3 Hudson Bouelvard Photo by STUDIO SCRIVO

From left: Joe Moinian and 3 Hudson Bouelvard Photo by STUDIO SCRIVO

The Moinian Group estimates it will cost $1.6 billion to develop its 1.7-million square-foot Hudson Yards office tower, 3 Hudson Boulevard, according to a public notice of the company’s intent to apply for economic incentives.

The developer put the $1.6 billion price tag on the planned 66-story tower at 400 11th Avenue on the corner of 34th Street when it filed an application with the New York City Industrial Development Agency seeking to make certain payments in exchange for forgoing property and mortgage-recording taxes on the tower.

The IDA had scheduled a hearing on the application for Jan. 8, but a spokesperson said Moinian had not submitted a complete application and the hearing will be rescheduled.

Moinian, like other office-tower developers in the booming Far West Side neighborhood, is in the process of purchasing bonus building rights for its property.

The total development costs – which include both soft- and hard-costs – work out to about $916 per square foot, which is roughly three-quarters the price Tishman Speyer, Moinian’s neighbor on the western side of the block, is paying.

In a similar filing with the IDA over the summer, Tishman said it will cost $3.2 billion to develop its 2.6-million-square-foot office tower at the corner of 10th Avenue and 34th Street.

That works out to nearly $1,230 per square foot. The prices each company paid for their respective development sites could explain the differences in cost.

Moinian paid about $117 per buildable square foot when it bought its site for nearly $55 million back in 2005. Tishman, on the other hand, paid about $649 per buildable square foot earlier this year to assemble two different properties for $438 million.

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