The Real Deal New York

Related projecting $1.5B sellout at
35 Hudson Yards

Developer and partner Oxford Properties will sell pads at an average of $11M a pop
By Will Parker | January 11, 2018 03:11PM

Jeff Blau and a rendering of 35 Hudson Yards (Credit: Related-Oxford)

Related Companies and Oxford Properties Group are targeting a $1.53 billion sellout at the under-construction supertall tower known as 35 Hudson Yards, which makes it the second-most expensive condominium project approved to launch sales since 2016.

The 136 apartments at the 1,000-foot-tall building would hit the market for just under $11.3 million on average, according to an offering plan accepted for sale earlier this month by the New York State Attorney General’s office

A spokesperson for Related and Oxford said that the company does not plan to officially launch sales at the property until later this year, however. The spokesperson declined to comment on specific unit pricing or other aspects of the development.

The building, which will include a hotel, has been funded by $1.2 billion in debt from the Dublin-based Children’s Investment Fund subsidiary Talos Capital. In June, Related and Oxford announced they would seek an additional $380 million in debt for properties at Hudson Yards, including 35 Hudson Yards, through the EB-5 investor visa program. In August, New York YIMBY reported the developers still needed another $10 million in EB-5 money for 35 Hudson Yards.

The developers previously raised $600 million through EB-5 across its multi-property Hudson Yards developments.

The company spokesperson said construction on 35 Hudson Yards is expected to wrap in 2019.

While luxury offices and apartments rise over the Hudson, the city could be on the hook for millions in costs to facilitate transportation and public spaces around the development, according to a June report from the city’s Independent Budget Office.

15 Hudson Yards, a condo and rental project with 106 affordable units, was partly funded with tax-exempt bonds from the New York State Housing Finance Agency. The 285 condos at that building will sell for an average of more than $6 million dollars, AG records show. Prices at 15 Hudson Yards range from $3.9 million to $32 million. Corcoran Sunshine and Related Sales are handling sales at both buildings.

Although the high-end luxury market has fallen in transaction volume in recent years, developers continue to build. Extell Development recently launched sales for the $4 billion Central Park Tower, where at least 20 units will be priced at $60 million or more.

CityRealty projects Manhattan new development sales to rise from $8.3 billion in 2017 to $9.8 billion in 2018, and then hitting $11.6 billion in 2019 and $11.9 billion in 2020, with between 1,800 to 2,000 units closing each year.

This article was update to correct the sales price range for 15 Hudson Yards.