The Real Deal New York

Tishman Speyer’s Hudson Yards tower to cost $3.2B: filing

Firm reveals all-in development price for 61-story building in an application with city agency
By Rich Bockmann | July 07, 2014 01:20PM

Tishman Speyer has put a $3.2 billion price tag on its 2.6 million-square-foot office tower in Hudson Yards, which will rise 61 stories when completed in late 2019.

The company, which earlier this year snapped up a pair of development sites at 34th Street and 10th Avenue, estimates the total cost of developing its office tower at $3.2 billion, according to an application filed with the New York City Industrial Development Agency.

By way of comparison, the country’s most-expensive office tower, the GM Building, is valued at $3.4 billion.

The IDA is offering Tishman a 25-year exemption of property taxes worth about $170 million. The building, which the developer is looking to construct to LEED Gold standards, will include 57,000 square feet of retail space.

Earlier this year Tishman paid $438 million for the far West Side properties, one of which had been marketed by Massey Knakal as the “Hudson Spire” development site with the potential to build the country’s tallest building, surpassing the 104-story One World Trade Center.

Tishman’s building, however, is planned for only 61 stories. The company intends to begin construction in the third quarter of 2015 and finish four years later.