The Real Deal New York

Brookfield’s first Manhattan West office tower will cost $2.1B to develop: filing

2 million-square-foot building to have 100k sf of retail

January 20, 2015 08:00AM
By Rich Bockmann

manhattan west

Brookfield Office Properties has pegged the total development cost for the first of its two Manhattan West office towers at slightly more than $2 billion, per an application it filed to avail of tax benefits.

One Manhattan West – the northernmost of a pair of office towers set to rise as part of Brookfield’s 5.4 million-square-foot, mixed-use megaproject on the Far West Side – will cost $2.1 billion to develop, according to an application the real estate investment trust filed with the New York City Industrial Development Agency, the financing arm of the New York City Economic Development Corp.

The figure includes hard and soft costs such as construction and marketing, as well as the price paid for land.

The Skidmore, Owings and Merrill-designed tower at Ninth Avenue and 33rd Street will span two million square feet, 100,000 of which will be set aside for retail.

The IDA will hold a hearing early next month to consider Brookfield’s application to make certain payments in lieu of property taxes, though the dollar figure of such payments was not immediately clear. Representatives for the REIT weren’t available for comment.

Other developers in the Hudson Yards neighborhood have applied for the same financial benefits for their multimillion-square-foot real estate proposals, and in the process have revealed telling information about the projects.

In July, Tishman Speyer put a $3.2 billion price tag on the 61-story office tower it is planning for the corner of 10th Avenue and 34th Street, as The Real Deal reported, and in December, the Moinian Group said it will cost $1.6 billion to develop its 1.7 million-square-foot office property at 11th Avenue.

Brookfield finished work on the concrete platform capping the Penn Station rail yards under its site in November, marking a major milestone for the project. Soon after, the developer filed an application to purchase $93 million worth of bonus building rights for 3 Manhattan West, the 62-story residential tower planned at the southern end of the campus.

 

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