TRD Insights: This is what office tenants are paying to lease up 55 Hudson Yards

CMBS loan documents provide insight into office tower’s rent roll

New York Insights /
Jun.June 17, 2020 09:00 AM
Point72's Steven Cohen, Third Point's Daniel Loeb,  55 Hudson Yards and Facebook’s Mark Zuckerberg (Getty)

Point72’s Steven Cohen, Third Point’s Daniel Loeb,  55 Hudson Yards and Facebook’s Mark Zuckerberg (Getty)

Just a few months before apparently souring on the concept of physical office space, Facebook was the latest high profile office tenant to sign on for Related’s Hudson Yards megadevelopment, taking up a total of 1.5 million square feet at 30, 50 and 55 Hudson Yards.

Months later, in the early days of coronavirus’ rapid spread in New York City, one of Facebook’s new neighbors at 55 Hudson Yards — Steve Cohen’s Point72 Asset Management — revealed that an employee had contracted the disease, sparking concern among other tenants.

Documents associated with last year’s $1.2 billion CMBS financing of 55 Hudson Yards — which is 90-percent owned by Japan’s Mitsui Fudosan — provide a detailed look at the 51-story office tower’s rent roll. They also reveal information not often readily available for other office properties, or other parts of Hudson Yards’ complex financing.

The bulk of the new financing was first included in an $810.5 million single-asset CMBS deal last November, while remaining pieces have been packaged into a number of other deals, the most recent of which was the $617.9 million BANK 2020-BNK27.

“The majority of tenants have their employees working remotely, while the building remains open with only security and essential staff on site,” a Kroll report on the latest CMBS deal says of the property. The vast majority of tenants have paid their rent in full.

Here’s a rundown of the top 10 tenants at the property:

Top 10 Tenants at 55 Hudson Yards

#Tenant FloorsExpirationBase Rent ($000's)% of Total Base RentSF% of Total SFBase Rent / SFTenant Industry
1Point723 - 142034$29,36521.90%332,28323.20%$88.37Financial Services
2Milbank, Tweed, Hadley & McCloy30 - 392034$24,04117.90%287,33320.10%$83.67Legal
3Cooley42 - 462039$15,06111.20%146,22710.20%$103.00Legal
4Third Point49 - 512029$11,5768.60%89,0436.20%$130.00Financial Services
5Boies, Schiller & Flexner18 - 212035$9,1356.80%110,7327.70%$82.50Legal
6MarketAxess15 - 172034$7,7055.70%83,2985.80%$92.50Financial Services
7Facebook24 - 252024$6,5964.90%56,8584.00%$116.01IT Service
8Silver Lake Technology40 - 412034$5,9544.40%58,0894.10%$102.50Financial Services
9Cognizant26 - 272031$5,9344.40%57,2574.00%$103.64IT Service
10Stonepeak482029$4,0073.00%29,6832.10%$134.99Financial Services
Top Ten Tenants$119,37489.00%1,250,80387.40%$95.44
Total$134,147100%1,431,212100%$93.73

SOURCE: Kroll Bond Rating Agency


Related Articles

arrow_forward_ios
555 California Street with Steve Roth and Donald Trump (VNO, Getty/Patrick McMullan, Getty)
What tenants pay at Vornado and Trump’s 555 California Street
What tenants pay at Vornado and Trump’s 555 California Street
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
Crescent Real Estate chairman John Goff and Crescent Court (Crescent)
Here’s what tenants pay at the Crescent mixed-use tower in Dallas
Here’s what tenants pay at the Crescent mixed-use tower in Dallas
Chetrit Group principal Michael Chetrit and 850 Third Avenue (850thirdavenue)
CMBS loan for Chetrit’s 850 Third Avenue enters special servicing
CMBS loan for Chetrit’s 850 Third Avenue enters special servicing
525 Market Street, Amazon CEO Jeff Bezos, Sephora CEO Martin Brok and Wells Fargo CEO Charles W. Scharf. (Getty, Keating Architecture)
Here’s what tenants pay at 525 Market Street in San Fran
Here’s what tenants pay at 525 Market Street in San Fran
Hines chairman and CEO Jeff Hines with 609 Main in Houston, Texas (Hines)
Here’s what tenants are paying at Hines & CalPERS’ 609 Main
Here’s what tenants are paying at Hines & CalPERS’ 609 Main
SL Green CEO Marc Holliday (Getty, Sl Green)
SL Green shareholders cry foul on CEO bonus
SL Green shareholders cry foul on CEO bonus
The self-storage sector added about 300 million square feet of new supply over the last decade, as the number of apartments grew and the size of each unit fell. (iStock)
Here’s where the most self-storage space was built in the past decade
Here’s where the most self-storage space was built in the past decade
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...