The Real Deal New York

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
By Rich Bockmann | March 28, 2017 03:20PM

Daniel Loeb and a rendering of 55 Hudson Yards

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.

Stephen Winter

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)