The Real Deal New York

Rockrose paves the way for Hudson Yards rental tower with $20M air rights deal

The building will rise 51 stories
February 01, 2019 11:00AM

Rockrose’s Justin Elghanayan and 551 West 38th Street (Credit: Getty Images and Google Maps)

Rockrose Development has secured the final air rights necessary to build the first tower in its 1.6 million-square-foot Hudson Yards master plan.

The firm paid $20.5 million for over 139,000 square feet of air rights from the Metropolitan Transportation Authority, according to new report from Pincus Co. The pencils out to $147 per square foot.

Developers can purchase additional air rights in Hudson Yards through payments to the city’s Hudson Yards District Improvement Fund or to the MTA.

Rockrose will use the development rights for its 598-unit rental building at 551 West 38th Street, for which it filed plans in September. The 51-story tower, designed by Rafael Pelli of Pelli Clarke Pelli, will include 16,000 square feet of amenities.

The company started piecing together the land for its Hudson Yard developments in 2001. In 2007, it paid $83.4 million for 476 11th Avenue. It then purchased the third and final piece at 528-534 West 29th Street from Mercedes for an undisclosed sum in 2012.

Rockrose is also planning to build 1.2 million-square-foot office tower, president Justin Elghanayan told TRD last year. [PincusCo] — Decca Muldowney