The Real Deal New York

KKR eyeing 400K sf office condo at Hudson Yards

Private equity firm would move from 9 West 57th Street

May 12, 2015 08:30AM

Rendering of Hudson Yards on Manhattan's West Side (credit: Kohn Pedersen Fox)

Rendering of Hudson Yards on Manhattan’s West Side (credit: Kohn Pedersen Fox)

Private equity giant Kohlberg Kravis Roberts is considering buying a 400,000-square-foot office condo in Hudson Yards.

The firm has occupied 160,000 square feet in Sheldon Solow’s 9 West 57th Street for nearly two decades, the New York Observer reported. Now, it is considering investing in Related Companies’ and Oxford Properties Group’s massive West Side development.

Related and Oxford are “going to take advantage there in the strong interest in the investor market and look to monetize and take some of the risk off of the table for some of the opportunities they are marketing,” a source told the newspaper. “I’m sure it’s not a [financial] stretch to get the space.”

Other companies that have already taken space in Hudson Yards include Coach, which snagged a 740,000-square-foot condo in 10 Hudson Yards for its global headquarters, and Time Warner, which is heading to 30 Hudson Yards.

Related, KKR and CBRE, which is marketing the space, did not comment. [NYO]Tess Hofmann