Related’s rail yards deal contingent on Manhattan apartment prices

The Metropolitan Transportation Authority has released the terms of its $1 billion West Side rail yards development deal with the Related Companies, which is up for approval by the agency’s board tomorrow and has not yet been signed by the developer (see the full agreement below). Related doesn’t have to start paying rent on its 99-year lease until the deal closes, which won’t happen until certain market conditions — like Midtown office vacancies falling to 11 percent and Manhattan apartment prices averaging $1,200 a foot — are met. That is, unless the MTA decides to force Related to close within 90 days or walk, which it has reserved the right to do. [NYO] Staff Summary 4-26-10 FINAL