The Real Deal New York

Coach demands rival-free Hudson Yards – and Related agrees

At least eight stores, including Polo Ralph Lauren, are not welcome in South Tower
September 16, 2013 12:25PM

Related Companies has Coach as an anchor at its Hudson Yards mega-project because it signed off on a demand not to lease any space to competitors of the handbag heavyweight. Coach made the no-competitor condition after it bought 740,000 square feet in the development’s Tower C, or the South Tower.

Related heard from Coach after L’Oreal grabbed 402,000 square feet of the 1.7-million-square-foot building. The lease rider prohibits Related from leasing office or retail space to at least eight competitors, including Polo Ralph Lauren Corp., J. Crew Group and Burberry Group.

Starwood Property Group provided $350 million in funding for the skyscraper, at 31st Street and 10th Avenue. Oxford Properties Group, the trade union United Brotherhood of Carpenters and Joiners, and Coach paid the balance, as previously reported. [WSJ]Mark Maurer