Related Looking to Sell Portion of 35 Hudson Yards

As Related Companies moves forward on an office tower in Hudson Yards — and not a proposed casino — the developer is eyeing another significant change in the neighborhood.

Related and partner Oxford Properties are exploring a sale of a portion of 35 Hudson Yards, Bloomberg reported. They could also choose to recapitalize the property, according to marketing materials seen by the outlet.

The sections of the building the partners are looking to recapitalize or sell include office, retail, fitness and hotel condominiums completed just before the pandemic. That excludes the 143 residential condominium units in the building.

The components that are up for grabs add up to 180,000 square feet of office space that’s fully leased, an Equinox gym — the fitness company is a subsidiary of Related — and a retail portion that’s 73 percent leased, including to SoulCycle, a subsidiary of Equinox. The 15-floor Equinox Hotel, meanwhile, has 212 rooms.

All told, the pieces up for sale could include a $600 million price tag, a source told Bloomberg. Newmark’s Doug Harmon and Adam Spies are leading the process for ownership, which declined to comment.

Related and Oxford managed to raise a staggering $2 billion to build 35 Hudson Yards, a 1,000-foot tower that’s one of the tallest in the United States. The office, retail and fitness sections of the property qualify for a tax abatement in place through 2039.

Sales for the untouchable residential portion of the property began in 2019, led by Related and Corcoran Sunshine. Amenities for residents include a yoga studio, golf simulator and residents’ lounge with a terrace.

Earlier this year, a unit with an asking price of $15 million went into contract, one of the priciest units to do so that week. The 4,600-square-foot condo first hit the market in 2019 with an asking price just under $29 million.

Hudson Yards on the Far West Side remains one of the most notable neighborhood developments in recent New York City history. It could’ve been home to another seismic shift in the city, the addition of a casino.

However, Wynn Resorts announced last month it was withdrawing from a partnership with Related, citing the city’s rezoning process. Related announced it would instead move ahead with building up to 4,000 housing units on the site, as well as an office building and hotel.

— Holden Walter-Warner