Related enters contract on $2.2B Hudson Yards sale-leaseback

The media giant will be located at Related's 30 Hudson Yards until 2034
April 24, 2019 08:00AM

From left: Related Companies chairman Stephen Ross, 30 Hudson Yards, and WarnerMedia CEO John Stankey (Credit: Getty Images)

From left: Related Companies chairman Stephen Ross, 30 Hudson Yards, and WarnerMedia CEO John Stankey (Credit: Getty Images)

The Related Companies went into contract on its $2.2 billion sale-leaseback deal with WarnerMedia at 30 Hudson Yards, the firms said Tuesday.

The media giant has entered a 15-year lease with Related to take 1.5 million square feet at the 101-story tower, according to Deadline. News of the deal broke earlier this month, which initially suggested a 20-year lease. Related expects to close on the deal late in the second quarter.

The firm is currently in the process of moving its network titles — CNN, HBO, Warner Bros. and Turner — from their location at 10 Columbus Circle to the 101 story tower.

WarnerMedia made a similar play at its Columbus Circle location, where it entered a $1.3 billion sale-leaseback deal with Related, GIC and the Abu Dhabi Investment Authority in 2014.

AT&T, which acquired WarnerMedia for $85 billion last year, said it would use the sale-leaseback to reduce its $170 billion debt. [Deadline] — David Jeans