The Real Deal New York

SL Green, Vornado bid on 11-building Trinity Church portfolio

Hudson Square commercial offering increased from just four buildings
August 19, 2015 08:30AM

Trinity Church’s gargantuan 11-building cluster around Hudson Square is up for grabs, and the city’s biggest commercial players have thrown in their hats.

SL Green Realty, Vornado Realty Trust, Ivanhoe Cambridge, Norges Bank and Brookfield Property Partners are reportedly among the bidders for 99-year leases on millions of square feet of office and retail space. 

CBRE’s Darcy Stacom is handling the account for Trinity. The deadline for bids on the cluster was Aug. 6, the New York Post reported.

The portfolio is centered on One Hudson Square, a 17-floor, 1.2 million-square-foot office building occupying its entire block. The massive agglomeration  also includes 387,000 square feet at 200 Hudson Square, 401,000 square feet at 205 Hudson Square, and 61,000 square feet at 12-16 Vestry Street, along with seven other buildings in the area.

Trinity offered a similar, smaller portfolio of commercial buildings to many of the same bidders earlier this year. That deal was expected to bring in about $1.5 billion. The company, the real estate arm of Trinity Church, reconsidered in the face of underwhelming early bids.

Sources close to the bidders told The Real Deal at the time that it was unrealistic to ask for up-front payments for such long-term leases. “They were hoping somebody would hold their nose and live with it,” one source said. “It was very naïve.”

Trinity owns about $3 billion worth of real estate in the city, roughly 5.5 million square feet. [NYP] – Ariel Stulberg