The Real Deal New York

Tishman won’t build near Javits Center without anchor tenants

Developer plans a 1.3M sf office tower there and a 2.85M sf one nearby

March 15, 2016 08:36AM

Rob Speyer with Tishman Speyer's development site across from the Jacob Javits Center

Rob Speyer with Tishman Speyer’s development site across from the Jacob Javits Center

Tishman Speyer has no plans to start building on its newly-assembled far West Side side.

The developer won’t begin on its planned 1.3 million square foot office tower at the site – across from the Jacob Javits Center on 11th Avenue between 37th and 38th streets – until it has pre-signed tenants in place, the New York Post reported, citing sources familiar with the company’s plans.

Tishman announced two buys at the site last week. It bought 434-444 Eleventh Avenue from the Imperatore family, for roughly $185 million. It also picked up a 7,400-square-foot plot at 550 West 37th Street from the Chiaia family for an undisclosed price.

“Manhattan’s far west side is well on its way to becoming the world’s most modern, dynamic and sustainable urban neighborhood,” the company’s CEO, Rob Speyer, said at the time.

The company is planning another tower nearby, at Hudson Yards. That Bjarke Ingels-designed, 2.85-million-square-foot office tower is to be known as “The Spiral.”

The firm received a 25-year tax abatement worth $170 million for that project, and is also seeking financing by pre-leasing about 30 percent of the tower.

Major office tenants including Time Warner, KKR, Boston Consulting Group and Skadden Arps have recently quit Midtown for the Related Cos’ Hudson Yards towers and Brookfield’s Manhattan West. [NYP]Ariel Stulberg

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