The taxman cometh, but not for Related Companies and Oxford Properties Group’s 50 Hudson Yards. The developers will receive $195 million in tax breaks from the city for their planned $4 billion office tower.
The Industrial Development Agency agreed to allow the developers to make fixed payments in lieu of paying property taxes, Crain’s reported. The agency also gave them a discount for the mortgage recording tax on the property, according to the publication. The IDA has offered these forms of assistance since 2006 to encourage development in Hudson Yards.
The building is likely to become the most expensive office building ever constructed in the city, as The Real Deal first reported. The all-in development costs for the 2.8 million-square-foot tower is expected to be $3.94 billion, according to the partners’ recent application to the agency.
Last month, BlackRock inked a preliminary agreement to take 850,000 square feet at the tower over 20 years. The move will allow the asset manager to receive $25 million in state tax credits over the next decade.
Three years ago, Related and Oxford received a 40 percent tax break for its development at 30 Hudson Yards, which will allow the developers to save an estimated $330 million in taxes. [Crain’s] — Miriam Hall