The Real Deal New York

The Related Companies is plowing ahead with its preliminary construction work at the 26-acre West Side rail yards site, between 30th and 33rd streets, 10th Avenue and the Hudson River, which it ultimately plans to transform into a massive office, retail and residential destination. According to the Wall Street Journal, the developer is hiring a contractor this week to demolish the 60,000-square-foot former metal products distribution center that stands on the site of its first new rail yards building, an 800-foot tower with 1 million square feet of office space and 25 floors of apartments. The developer had previously said it wanted to sign on a few major tenants before jumpstarting its various projects at the rail yards, but the improving office market appears likely to soon trigger significant rent payments to the city under its agreement with the Metropolitan Transportation Authority. Also, luxury purse retailer Coach was recently reported to be in “serious talks” with the developer for a new corporate headquarters at the yards. [WSJ]