Related Cos. is set to start work on its planned boutique office and retail development in Soho before securing a tenant at the property – with the Hudson Yards developer citing “very strong interest in the building and the marquee” from prospective tenants.
The Jeff Blau-led development giant expects to break ground on 300 Lafayette Street, a seven-story terracotta and limestone building, in the next few months. The $200 million project will feature 53,000 square feet of office space and 30,000 square feet of retail upon its expected completion in 2018.
Related will build on the location, located along East Houston Street at a site currently occupied by a BP gas station, in partnership with Midtown-based real estate investment and development firm LargaVista Cos., according to Crain’s.
The COOKFOX Architects-designed project is notable for its abundant outdoor space, with terraces on each floor as well as a roof deck. The development is targeting tenants like hedge funds, private equity firms and tech firms seeking state-of-the-art offices in trendy locations, Crain’s reports.
While Related initially intended to secure a tenant before breaking ground, the company determined that it would need to take a risk and construct the project without a tenant signed on – as small-sized office tenants are reluctant to decide on their office space years in advance and commit to as much as $150 per square foot in rent before seeing the space finished.
Related also hopes the project will tap into Soho’s robust retail market, where prime storefront space leases for as much as $1,000 per square foot. [Crain’s] – Rey Mashayekhi