Daniel Loeb’s $15B hedge fund Third Point heading to Hudson Yards: sources

Billionaire investor’s firm has a lease out for the top floors at 55 Hudson Yards

TRD New York /
Mar.March 28, 2017 03:20 PM

Daniel Loeb’s Third Point Management has a deal in place to move to Related Companies’ 55 Hudson Yards, The Real Deal has learned.

Third Point has a lease out for the top two or three floors of the 1.3 million-square-foot 55 Hudson Yards, covering 60,000 or 90,000 square feet, sources told TRD. Asking rent for the space is $140 per square foot, but a source familiar with the Third Point deal said it is getting done in the $130 per square foot range.

If the deal goes through, the $15 billion hedge fund would be just the latest in a flurry of blue-chip financial tenants headed to the Far West Side megaproject from Midtown.

The investment firm Silver Lake reportedly has a deal to lease 50,000 square feet at 55 Hudson Yards. And next door at 50 Hudson Yards, asset manager BlackRock last year signed a letter of intent to take 850,000 square feet, while Morgan Stanley is reportedly considering buying an office condo that would take up most of the remaining space at that upcoming tower.

Third Point and the company’s broker, JLL’s TRData LogoTINY Alexander Chudnoff, did not immediately respond to requests for comment. A spokesperson for Related, which is co-developing the tower with majority investor Mitsui Fudosan America, declined to comment.

Third Point, which is now located at RFR Realty’s 390 Park Avenue, is reportedly raising a fund with minimum investments of $10 million for the first time since it raised $2.5 billion in 2015. And it’s doing so at a time when the hedge fund industry is in a state of flux as managers struggle to produce the kinds of returns investors are expecting.

In 2016, 1,057 hedge funds were either closed or liquidated, compared to just 729 that opened during the year, according to data from Hedge Fund Research Inc. cited by the New York Times.

Hedge fund titan Richard Perry last year announced he was shutting down his flagship Perry Capital fund after 28 years. The company negotiated a buyout with Boston Properties at the General Motors Building on its 40,000-square-foot lease, which had about three or four years remaining on it. Sources said Perry had to pay a hefty sum to terminate the remaining term.

And last week, Goldman Sachs alum Eric Mindich told investors he was shutting down his $7 billion Eton Park Capital Management fund. The company occupies about 61,000 square feet at Boston Properties’ 399 Park Avenue on a lease that is expiring soon.

At 55 Hudson, Loeb will join fellow billionaire investor Steven A. Cohen’s Point72 Asset Management as well as the law firms Boies, Schiller & Flexner and Milbank, Tweed, Hadley & McCloy, which have already inked deals at the under-construction tower.

Drug maker Intercept Pharmaceuticals last year finalized a deal to lease 85,000 square feet at 55 Hudson. The transaction also included 49,000 square feet at 10 Hudson Yards, which Intercept can occupy until the new building is completed, which is scheduled for next year.

CBRE’s Bob Alexander and Howard Fiddle are handling leasing at Hudson Yards, along with Related’s Stephen Winter.

(To see a selection our Deal Sheet office leases in Hudson Yards, click here)


Related Articles

arrow_forward_ios
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
Clipper Equity's David Bistricer (REIT)

David Bistricer’s Clipper Realty reports record Q2 profit

David Bistricer’s Clipper Realty reports record Q2 profit
Vornado CEO Steven Roth and a rendering of the Farley Post Office building (Getty, iStock, SOM)

Vornado will install facial recognition tech in all its buildings

Vornado will install facial recognition tech in all its buildings
Cushman & Wakefield’s Brett White

Cushman & Wakefield reports $101M quarterly loss

Cushman & Wakefield reports $101M quarterly loss
Durst Organization chairman Douglas Durst and Advance Publications president Donald Newhouse with One World Trade Center (Newhouse by Ilya S. Savenok/Getty Images for The Association for Frontotemporal Degeneration; Unsplash)

Condé Nast may be moving out of 1 WTC

Condé Nast may be moving out of 1 WTC
Moody's CEO Raymond McDaniel and 1 World Trade Center (McDaniel by Alex Wong/Getty Images; Pixabay)

Moody’s looks to sublease its 1 WTC office

Moody’s looks to sublease its 1 WTC office
From left: Manhattan Mall at 100 West 33rd Street, Vornado CEO Steven Roth and a rendering of the Farley Post Office building (Roth by Misha Friedman/Getty Images; Manhattan Mall via VNO; Farley Building via SOM)

Vornado may convert Midtown J.C. Penney space to last-mile facility

Vornado may convert Midtown J.C. Penney space to last-mile facility
(iStock)

TRD Insights: Nationwide office leasing demand hits two-decade low

TRD Insights: Nationwide office leasing demand hits two-decade low
arrow_forward_ios

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

Loading...