The Related Companies closed on a 75-year ground lease on the final piece of land it needs to develop 50 Hudson Yards, the largest building planned for the developer’s Far West Side megaproject.
The firm, which is partnering with Oxford Properties Group on the development, will pay $60.8 million in rent for 503-505 West 33rd Street, the Commercial Observer reported. The property — currently home to a 8,945-square-foot building — is owned by 503 West 33rd Street Associates, an entity controlled by William D’Alessandro.
Related has spent about $200 million over the past seven years gathering the properties it needs to construct the 2.9 million-square-foot building in Hudson Yards. It spent $152.3 million to acquire 427 10th Avenue in January, and acquired a five-story manufacturing building at 507-511 West 33rd Street for $30 million in August 2015.
Earlier this month, asset manager BlackRock inked a preliminary agreement to lease 850,000 square feet at the building for 20 years. Related and Oxford have tapped Foster + Partners to design the building, and construction is expected to kick off in 2017. [CO] — Miriam Hall