The Real Deal New York

BlackRock to pay $1.25B for lease at
50 Hudson Yards

Asset manager will move to the west side in 2023
May 25, 2017 05:53PM

Rendering of 50 Hudson Yards (Credit: Related, Click to enlarge)

BlackRock will pay $1.25 billion over 20 years for its 847,000-square-foot lease at Related Companies and Oxford Properties Group’s 50 Hudson Yards development.

The company said in filings Wednesday that it will pay an average of $74 per square foot over the 20 years, but will pay a mere $60 a square foot in the first five years. Sources told Reuters that the asset manager will also have to cough up around $30 per square foot in annual operating expenses and property taxes. The lease starts in 2023.

When BlackRock TRData LogoTINY signed a preliminary agreement to move to Hudson Yards in December, it also bagged a $25 million state tax credit. BlackRock currently occupies 700,000 square feet at Fisher Brothers and Soho China’s 55 East 52nd Street and Rudin Management’s 40 East 52nd Street under lease deals expiring in 2023.

According to Cushman & Wakefield, the average Midtown office asking rent was $84.09 in April. [Reuters] — Konrad Putzier