Coach marketing its stake in 10 Hudson Yards

Luxury goods brand owns 40% of property, plans to lease back office space in building as part of any deal

TRD New York /
Nov.November 13, 2015 12:59 PM

Luxury brand Coach Inc. is said to be marketing its 40 percent interest in 10 Hudson Yards – the first skyscraper that will be completed at Related Cos.’ Hudson Yards megadevelopment on Manhattan’s Far West Side.

While Related and partner Oxford Properties Group will maintain their stakes in the 1.7 million-square-foot tower, Coach – the office building’s anchor tenant – is looking to sell its interest in the property, Bloomberg reported.

While declining to identify the seller of the stake, Related CEO Jeff Blau said in an interview with Bloomberg that one of the tower’s sovereign wealth investors plans to recapitalize its position at the 52-story tower.

Coach paid $530 million for its 738,000-square-foot portion of 10 Hudson Yards, according to Real Capital Analytics data cited by Bloomberg. The building is more than 90 percent committed and is likely to be fully leased in the coming weeks, Blau said.

The recapitalization allows Coach an opportunity to profit off its early investment in the property, with the handbag maker planning to lease back its offices at 10 Hudson Yards as part of the sale of its interest.

Eastdil Secured, led by senior managing director Doug Harmon, is marketing the stake on behalf of the building’s ownership group.

“We are committed to our move to the new Coach building at 10 Hudson yard and a long-term lease would be part of any transaction,” a Coach spokesperson said.

Related expects to have a deal in place for the building’s 40 percent interest in January and have it closed by June, when the skyscraper is set to be completed.

Blau told Bloomberg that the recapitalization was planned all along at 10 Hudson Yards, the centerpiece of one of the most complex construction financing deals in city history.

Starwood Property Group led the origination of a complex $475 million construction loan at 10 Hudson Yards. Barry Sternlicht’s firm provided $350 million in funding while Oxford, United Brotherhood of Carpenters and Jointers and Coach picked up the balance.

“Starwood’s thinking was, ‘If they [Related/Oxford] screw up the first one, they screw up the entire project, so how can they not finish the building?’” adviser Jeffrey Lenobel, of Schulte Roth & Zabel, told The Real Deal in 2013. [Bloomberg]Rey Mashayekhi

Related Articles


Related is the latest developer to target the Rockaways

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

15 Hudson Yards (Credit: Related-Oxford, iStock)

First he sold a plot of land to Hudson Yards’ developers. Now he owns 7 luxury condos there

The Plaza Hotel in 1975 and models walking the runway during New York Fashion Week September 2019 (Credit: Getty Images)

Fashion Week struts its stuff at these iconic NYC locations

M&T CEO René Jones and Brookfield managing partner Ben Brown with 5 Manhattan West (Credit: M&T, Brookfield, and Wikipedia)

Brookfield lands $184M refinancing for Manhattan West retail

From left: Prabal Gurung, Dana Lorenz and Stephen Ross (Credit: Getty Images)

Stephen Ross backlash hits Hudson Yards

Related CEO Jeff Blau, Deutsche Bank CEO Christian Sewing, and Time Warner Center at 10 Columbus Circle (Credit: Getty Images and Wikipedia)

Deutsche Bank shrinks footprint at future Columbus Circle home amid global downsizing

Gym chain creator looks to part ways with Westchester County compound