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
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
Facebook close to finalizing Hudson Yards office deal: report
Facebook close to finalizing Hudson Yards office deal: report
Related CEO Jeff Blau and 455 Tenth Avenue (Chris Martin, Google Maps, iStock)
Related launches lodging for executives’ hybrid work
Related launches lodging for executives’ hybrid work
Major Food Group managing partner Jeff Zalaznick in front of 37 Hudson Yards (Major Food Group, Google Maps)
Major Food Group bringing members club to Hudson Yards
Major Food Group bringing members club to Hudson Yards
Tishman Speyer's Rob Speyer with 66 Hudson Boulevard (Tishman Speyer, Loopnet)
NewYork-Presbyterian takes 75K sf at Tishman Speyer’s Spiral
NewYork-Presbyterian takes 75K sf at Tishman Speyer’s Spiral
Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
Related sues Meadow after foreclosure on Garment District hotel
Related sues Meadow after foreclosure on Garment District hotel
The Spiral with Tishman Speyer's Rob Speyer and HSBC's Noel Quinn (Getty, HSBC)
HSBC grabs 265K sf at Tishman Speyer’s Spiral
HSBC grabs 265K sf at Tishman Speyer’s Spiral
arrow_forward_ios

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

Loading...