The Real Deal New York

Related pays $96M for its piece of Hudson Yards development with Spitzer

Stephen Ross’ firm signed contract on parcel back in 2013
By Rich Bockmann | September 19, 2018 11:30AM

From left: Related’s Stephen Ross and 517 West 35th Street (orange) and Eliot Spitzer and neighboring parcels (red) (Credit: Google Maps and Getty Images)

The Related Companies paid $96 million for the Far West Side site that will be part of the 1.4 million-square-foot, mixed-use project the company is developing with Eliot Spitzer.

The Hudson Yards developer closed less than two weeks ago on the site at 517 West 35th Street, property records filed with the city Wednesday show. Related is financing the purchase with a $65 million loan from Mack Real Estate Credit Strategies.

The $96 million purchase price works out to roughly $410 per buildable square foot for the site, though that figure doesn’t necessarily represent the current market value. Related signed a contract to buy the site back in August of 2013, which is most likely when the price was negotiated.

The developer can also blend down the land cost of its development by purchasing additional building rights available to projects in the Hudson Yards district.

A representative for Related could not be immediately reached for comment. The seller is Pelham, N.Y.-based HLM Realty, which purchased the site for an undisclosed price in 2003, two years before the Hudson Yards rezoning.

The property sits next to the first phase of Hudson Boulevard Park and adjacent to a handful of properties that Spitzer spent $123 million assembling in recent years.

The two developers are teaming up to build an apartment and office project on the site.