Allianz is partnering with Related on $2.2B Hudson Yards deal

Deal is in contract for just under $1,500 a foot
April 25, 2019 10:30AM

30 Hudson Yards with Related chairman Stephen Ross (left) and Allianz Real Estate of America CEO Christoph Donner (Credit: Getty Images)

30 Hudson Yards with Related chairman Stephen Ross (left) and Allianz Real Estate of America CEO Christoph Donner (Credit: Getty Images)

Allianz Real Estate is placing another huge bet on Hudson Yards.

The real estate arm of German investment firm Allianz Group has teamed up with Related Companies on the $2.2 billion deal to buy WarnerMedia’s office space at 30 Hudson Yards and lease it back to the media company, Commercial Observer reported, citing sources.

Allianz is taking a roughly 45 percent stake in the office condominium, the report said. The deal with WarnerMedia is in contract for about $1,466 a square foot, but has not yet closed.

In 2016, Allianz also acquired a 44 percent stake in 10 Hudson Yards for $420 million, buying out both Tapestry (formerly Coach), and the Kuwait Investment authority. The deal valued the building at $2.15 billion.

WarnerMedia bought the 1.5-million-square-foot office condo in 2014 for its new headquarters. This January, the company said it sought to sell and raise around $2 billion through the deal. Related snagged the winning bid shortly after, the report said, and the deal is expected to close in the second quarter. It is the city’s largest deal since Google’s $2.4 billion purchase of Chelsea Market, which closed in October 2018.

Bloomberg reported earlier this month that Invesco had also bid to buy a stake in the WarnerMedia space.

WarnerMedia has started moving its 5,000 employees in the New York City area into the new office and will consolidate its various arms at the new location for the first time. That includes HBO, CNN, Turner Broadcasting and Warner Bros.

Time Warner executed a similar lease-back deal with Related in 2014 at the Time Warner Center. The media company sold its stake at 10 Columbus Circle to a joint venture between Related, the Abu Dhabi Investment Authority and Singapore’s GIC for $1.3 billion.

Cushman & Wakefield’s Doug Harmon, Adam Spies and Kevin Donner represented WarnerMedia in the latest deal. [CO] — Meenal Vamburkar