Related’s $4B tower at 50 Hudson Yards will be NYC’s most expensive office project

2.8M sf building will cost about $1,407 psf

New York /
Jan.January 03, 2017 05:36 PM

The Related Companies’ 50 Hudson Yards is expected to be the most expensive office building ever constructed in the city, with an all-in price tag of nearly $4 billion.

Related and its partner Oxford Properties Group peg the all-in development cost (including land acquisition, construction and soft-expenses) for the 2.8 million-square-foot tower at $3.94 billion, the partners disclosed in an application with the New York City Industrial Development Agency.

Related TRData LogoTINY is seeking permission to make fixed payments in lieu of property taxes that can fluctuate from year to year, and to forego paying the mortgage recording tax on the property – forms of assistance the IDA has offered since 2006 to encourage development in the Hudson Yards area. It’s not clear how much they would pay under such an arrangement.

A representative for Related declined to comment.

The nearly $4 billion price tag works out to about $1,407 per square foot for the Foster + Partners-designed tower (this figure is based on the 2.8 million square feet Related filed on forms with the IDA; the developer has said the project is 2.9 million square feet gross). The $1,407 per square foot cost is not far off from the $1,230 per square foot Tishman Speyer calculated it would cost to develop the $3.2 billion “Spiral,” which is being built across the street. As of now, One World Trade Center is the most expensive office building in the country with a cost of about $3.8 billion.

Related is still looking to lock down a $2.56 billion construction loan for 50 Hudson Yards, which the developer announced last month will be anchored by financial firm BlackRock.

The developer announced in December that the asset manager had signed a letter of intent to lease 850,000 square feet across 15 floors in the building, which is expected to open its doors in 2022.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere

Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Related chairman Stephen Ross and 265-475 Cherry Street (Getty; Google Maps)

Related to buy Section 8 buildings for $435M

Related to buy Section 8 buildings for $435M
Related's Steve Ross and 1 Union Square South (Getty, Google Maps)

MKF Realty set to close on Related’s Union Square high-rise for $200M

MKF Realty set to close on Related’s Union Square high-rise for $200M
David Boies and 55 Hudson Yards (Getty, Google Maps)

Boies Schiller seeks to shed Hudson Yards office space

Boies Schiller seeks to shed Hudson Yards office space
Related chairman Stephen Ross (Getty; iStock; Health Pass) 

Related, Cushman & Wakefield use new app to screen workers for Covid

Related, Cushman & Wakefield use new app to screen workers for Covid
Stephen Ross and Time Warner Center (Getty)

Stephen Ross slashes price of Time Warner Center penthouse

Stephen Ross slashes price of Time Warner Center penthouse
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...