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Category ArchiveHudson Yards

Hudson Yards

Hudson Yards, the largest private development in the United States and comprised of more than 18 million square feet of mixed-use space, is now one year away from opening and set to transform life in New York City. A model for future development, Hudson Yards is poised to become a global destination, reimagining urbanization and how we live in cities.

Developed by Related Companies and Oxford Properties Group, Hudson Yards is the fulfillment of a shared vision of a remarkable collaboration of planners, architects, engineers, designers, business leaders, and luminaries, working in partnership with New York’s development and transportation authorities.

Hudson Yards is an entirely new neighborhood on Manhattan’s West Side with  more than 100 shops and restaurants, including New York City’s first Neiman Marcus and signature restaurants and food experiences by Chefs and restauranteurs Thomas Keller, José Andrés, David Chang, Michael Lomonaco, Costas Spiliadis, rhubarb and D&D London; approximately 4,000 residences; The Shed, New York’s first arts center to commission new work across the performing arts, visual arts, and popular culture; 14 acres of public open space, a 750-seat public school, and an Equinox® branded luxury hotel with more than 200 rooms, all offering unparalleled amenities for residents, employees, and guests. The development of Hudson Yards will create more than 23,000 construction jobs.

The Expanding Hudson Yards District

Following the initial Hudson Yards development plan, the City and State have initiated enormous public investment in infrastructure, mass transit, new parks, cultural, and recreational facilities. These improvements, with Hudson Yards at the epicenter, have transformed the surrounding area and catalyzed rapid development of the now expanding Hudson Yards District.

This unprecedented volume of investments includes the $2.4 billion No. 7 Subway Extension, the $267 million Moynihan Station Extension, the $465 million renovation of the Javits Center, the $440 million development of Hudson River Park and $30 million Hudson Park & Boulevard, and the $190 million investment in the High Line, all resulting in world-renowned companies competing to participate in the creation of Manhattan’s newest neighborhood.

Related Companies and Brookfield Property Partners are the two most active developers in the Hudson Yards District. Related, in addition to its 28-acre development with Oxford Properties Group, has more than half a dozen projects including 515 West 18th Street by Heatherwick Studio that will include a collection of 180 one-, two-, three- and four-bedroom residences in two towers that connect beneath the High Line. Brookfield Property Partners is developing the Manhattan West area of the Hudson Yards District, which is a 5.4 million-square-foot mixed-use development consisting of five buildings and a 1.5-acre public park. Silverstein Properties is developing 520 West 41st Street, a residential condominium consisting of 499 units and rising 57 floors. The Moinian Group has been extensively invested in Manhattan’s Far West Side, with the largest ongoing project at 3 Hudson Boulevard, a 53-story, 1.8 million-square-foot office tower. Tishman Speyer’s Bjarke Ingels-designed office building at 509 West 34th Street, “the Spiral,” is expected to span 2.2 million square feet, with Pfizer agreeing to take 800,000 square feet and become the building’s anchor tenant. Another Bjarke Ingels-designed building is among the largest currently under construction, HFZ’s 76 Eleventh Avenue, known as the Eleventh, which will feature two towers, 25 and 35 stories, that will span 764,332 square feet. The Chetrit Group is developing a 46-story, hotel and residential building planned for 545 West 37th Street.

the shops and restaurants looking east from the plaza courtesy of related oxford Hudson Yards
The Shops and Restaurants Looking East from the Plaza

Momentum is Building

Momentum has been building over the past year, with The Shops & Restaurants at Hudson Yards now 70 percent leased. Landscaping on the five-acre Public Square and Gardens is set to begin, and Thomas Heatherwick’s Vessel, the centerpiece of Hudson Yards’ future Public Square and Gardens, has topped out, with all scheduled to open March 2019.

“The excitement surrounding the Hudson Yards neighborhood has far exceeded everyone’s expectations,” said Jeff Blau, CEO of Related Companies. “With more than half of the 285 residences currently on the market selling in less than a year and a half, and 92 percent of our available commercial office space already spoken for, we have demonstrated that Hudson Yards is where New Yorkers want to live and work.”

10 Hudson Yards, home to the global headquarters of Tapestry (Coach Inc., Kate Spade, Stuart Weitzman), L’Oréal USA, SAP, and The Boston Consulting Group, is now open and welcomes 6,000 employees every day. Additional companies that call 10 Hudson Yards home include VaynerMedia, Intersection, Sidewalk Labs, Crescent Capital Group, Ardea Partners, Chain Bridge Asset Management, and Intercept Pharmaceuticals.

15 Hudson Yards, the site’s first residential building to launch sales, has topped out with first move-ins for residents slated for December 2018. Designed by Diller Scofidio + Renfro in collaboration with Rockwell Group, the 70-story tower will offer both condominium and rental units, and sales for the 285 one- to four-bedroom condominium units are underway.

55 Hudson Yards will open later this year, with design of the 51-story, 780-foot tower led by Kohn Pedersen Fox. 55 Hudson Yards is home to Arosa Capital Management; Boies, Schiller & Flexner; Cooley LLP; Engineers Gate; HealthCor Management; MarketAxess; Milbank, Tweed, Hadley & McCloy LLP; Point72; Third Point LLC; and Silver Lake.

Construction on the second phase of the Western Rail Yard platform, located between 30th and 33rd Streets, from 11th to 12th Avenue, is also scheduled to begin in 2018.

The Observation Deck at 30 Hudson Yards is set to begin construction. 30 Hudson Yards, which is home to DNB Bank, Kohlberg, Kravis & Roberts (KKR), Time Warner Inc., and Wells Fargo Securities, will open in early 2019, along with the site’s mixed-use tower, 35 Hudson Yards, which will follow in late 2019. 50 Hudson Yards, the future home of BlackRock, will open in 2022.

One-of-a-Kind Health Care Service

Related and Oxford also recently announced a partnership with Mount Sinai Health System, and the creation of an 18,000-square-foot, state-of-the-art health center on the second floor of 55 Hudson Yards that will provide comprehensive, convenient, and exclusive care to all employees, residents, and families living in their Hudson Yards district buildings.

Scheduled to begin operations in early 2019, the health care service portfolio created by Mount Sinai will be a great complement to the Hudson Yards community. The addition of Mount Sinai and the Hudson Yards Health Center to Manhattan’s West Side community was a crucial component for Related and Oxford in curating the 24/7 mixed-use neighborhood. Comprehensive health care services will be delivered by a world-class team of medical experts led by distinguished internist Tina Sindwani, M.D.

3hb renderings 10 30 2017 hudson hero 3840x2160 Hudson Yards
3 Hudson Manhattan West

3 Hudson Boulevard

Developed by The Moinian Group, construction is underway at 3 Hudson Boulevard, a 53-story, 2 million-square-foot office tower designed by prominent architect Dan Kaplan of FXFOWLE and set to occupy the entire square block between 11th Avenue and Hudson Boulevard Park from West 34th Street to West 35th Street. Situated in the heart of the Hudson Yards District, directly across from the Javits Center, 3 Hudson Boulevard is adjacent to Hudson Boulevard Park, which includes a full complement of fountains, green space, public seating, and event space. The site also is intertwined underground with the 7 Subway Extension.

Committed to environmentally sustainable design for the 21st Century, 3 Hudson Boulevard will rise as a gently-turning tower of glass adorned with an array of solar panels on its southern and eastern facades, and a curtain wall comprised of spectrally selective glass with low-emissivity coatings for enhanced comfort, and environmental performance. This solar power generating tower will set a new standard for mixed-use development by uniting premium corporate offices and the most exclusive residences with the state of the art in modern green architecture. 3 Hudson Boulevard will provide corporate tenants with more than 1.8 million square feet of high performance, Class A office space, and the office lobby will offer a grand entry gracefully expressed in stone, sustainable wood and illuminated glass.

“The Hudson Yards District is transforming right before our very eyes,” said Joseph Moinian, Chief Executive Officer of The Moinian Group.” We are passionate about New York, and hope our Class A office tower, envisioned at the highest levels of excellence both for today and far into the future, will come to be synonymous with the City itself, and the pinnacle of modern design.”

“3 Hudson Boulevard is an elegant tower that brings a timeless presence to the skyline,” said Dan Kaplan, FAIA LEED AP, and Senior Partner of FXFOWLE, responsible for design of the tower. “State-of the-art office planning coupled with sustainable design practices creates the ideal workplace environment.”

the spiral cascading terraces Hudson Yards
The Spiral

The Spiral

Developed by Tishman Speyer, The Spiral is a 65-story, 1,005-foot-tall office tower consisting of 2.85 million square feet of sustainable Class A office space and 27,000 square feet of first-class retail. A cascading series of landscaped terraces and hanging gardens will define the signature building with readily accessible outdoor space catering to a dynamic, mixed-use urban community.

Designed by renowned architectural firm Bjarke Ingels Group, The Spiral tapers vertically with green spaces circling from base to top, with terraces that will provide each floor with outdoor space and multi-floor atria for dynamic work space flow or unique meeting areas. Center-core open floor plans will allow for flexible configurations, while soaring ceiling heights and virtually column-free floor plates will provide spectacular, unobstructed city and river views.

Located on Hudson Boulevard at the northern tip of the High Line elevated park, The Spiral will occupy an entire city block between 34th and 35th Streets. Directly facing The Spiral’s entrance is the newly extended 7 Train, providing an easy commute to Grand Central Terminal and the rest of Manhattan.

The tower’s 30-foot-tall lobby opens onto Hudson Boulevard Park, further extending access to urban green space and offering highly-desirable ground-floor retail. The Spiral’s focus on sustainability and green construction complements the adjacent acres of newly developed green space, including the final phase of the High Line and the 550-acre Hudson River Park, with its miles of bike and jogging paths. The Spiral is targeting LEED certification.

Residential Offerings

Related Companies also has two rental buildings, Abington House and One Hudson Yards, located on 30th Street and a boutique condo building on 28th Street by Zaha Hadid.

Both Related rental buildings are built along the High Line just south of its 28-acre Hudson Yards development and offer a suite of amenities that can’t be found in any other rental buildings throughout the Hudson Yards district. In addition to landscaped terraces and barbeque areas, Related residents living in these two buildings have access to a suite of swimming pools comprised of an 82-foot lap pool, plunge pool, salt pool and hot tub, a spa with a sauna and steam room, a fitness center curated by Equinox®, a half-court basketball court, bowling alley and game lounge with a pool table, foosball and shuffle board, as well as a Roto designed children’s playroom with a custom climbing gym.

The 11-story Zaha Hadid designed building at 520 West 28th Street features 39 distinctive residences of up to a 6,391 square feet and ceiling heights up to nearly 11 feet high. Strategically situated on the High Line, the property is also located just two blocks from Related and Oxford’s Hudson Yards development. Amenities include a 75-foot sky lit pool, a private IMAX theater, an entertainment suite with a High Line Terrace and a private reservable spa suite.

TF Cornerstone developed the first luxury residential building in Hudson Yards, and has long been committed to the West Side, beginning their foray into the area with 444 West 35th Street, completed in 1990. In 2002 they spearheaded the rezoning of two development sites, 505 and 455 West 37th Streets, which has acted as a catalyst for the rezoning of the Hudson Yards neighborhood. Both properties are completed and successfully leased with 99 percent occupancy. Kevin P. Singleton, executive vice president at TF Cornerstone, remains chairman of the Hudson Yards Hell’s Kitchen Alliance BID (HYHK Alliance).

Designed by award-winning Handel Architects, 455 West 37th Street is a 23-story, 394-unit residential rental property with 24-hour concierge, bicycle storage, fitness center, floor-to-ceiling windows, parking garage, and landscaped roof deck. Many residences also offer private balconies or terraces with city views. The property has approximately 20,000 square feet of retail.

505 West 37th Street is an 835-unit residential rental property, with two towers consisting of 34 and 43 floors. Designed by Handel Architects, the property offers two roof decks, 24-hour concierge, bicycle storage, fitness center, floor-to-ceiling windows, garden, landscaped rooftop terraces, infinity-edged pool.

manwest jpeg Hudson Yards
Manhattan West

Manhattan West

Brookfield Properties is developing Manhattan West, an eight-acre, six-building mixed-use development stretching from Ninth to Tenth Avenue, and 31st to 33rd Streets. Manhattan West will include more than five million square feet of custom designed state-of-the-art class-A office space, luxury apartments, a boutique hotel, curated retail amenities, chef-inspired culinary options, and two acres of open space, as well as Arts Brookfield, Brookfield’s award-winning arts and entertainment program.

Manhattan West provides unparalleled transportation access. The site sits directly between the soon-to-be-redeveloped Penn Station – the busiest train station in North America – and the new 7-train station at Hudson Yards, New York City’s first subway extension in decades. It is also one block from the A, C, E, 1, 2, 3 and 7 subway lines, New Jersey Transit, the Long Island Railroad and Amtrak.

One Manhattan West is currently under construction, with the future 67-story building scheduled for completion in 2019. Ernst & Young plans to move its U.S. headquarters from 5 Times Square to One Manhattan West, where it has signed a lease to take 600,000 square feet on 17 floors. The law firm Skadden, Arps, Slate, Meagher & Flom LLP have also been confirmed as tenants. Other tenants include EY, McKool Smith, Accenture, as well as the new headquarters for the NHL. The property offers efficiencies afforded by virtually column-free floor plates, multiple on-site amenities, robust infrastructure, high ceilings, excellent light, and views in all directions. The project is scheduled for completion in the fourth quarter of 2019.

At Two Manhattan West, a second two-million-square-foot office tower will be constructed when an anchor tenant is secured. The adjacent amenities and green space provide an incomparable urban campus environment. Below-grade work has commenced.

Five Manhattan West, formerly known as 450 West 33rd Street, is the cornerstone of the new Manhattan West community. In 2017, Brookfield completed a comprehensive $350 million redevelopment program designed by celebrated architect Joshua Prince-Ramus of REX that fully modernized and integrated the building into the Manhattan West campus. Ideal for TAMI (technology, advertising, media and information) tenants, Five Manhattan West is one of a handful of buildings in New York City with floor plates larger than 100,000-square-feet. The building’s current tenant roster includes R/GA, Markit and JPMorgan Chase. In March 2017, it was announced Whole Foods Market signed a 60,000-square-foot retail lease at Five Manhattan West and in September 2017, Amazon inked a deal for 360,000-square-feet. Five Manhattan West also has a public plaza, called Magnolia Court.

The Lofts at Manhattan is a 202,000-square-foot, 13 story office property featuring 15,000-square-foot floor plates, and a 3,000-square-foot rooftop terrace. Fitting for a tenant seeking a “building within a building” opportunity, it has two separate lobby entrances and elevator banks, one for a tenant occupying a significant portion of the building with branding opportunities and the other for remaining tenants. In December 2017, international co-working operator Spaces signed a lease for 103,000-square-feet, bringing the building to nearly 100% leased.

The Eugene is an 844-unit, 62- story luxury residential tower which opened in March 2017. Residents experience more than 50,000 square feet of lifestyle and recreational amenities including La Palestra fitness classes, nutritionists and physical therapy, amenities and personalized care services provided by LIVunLtd, a playroom, regulation-sized indoor basketball court, rock climbing wall and more. The Eugene also features The Hudson Club, an exclusive, rooftop members-only club featuring a sunroom with cocktail bar, a private dining room with chef’s kitchen, a poker/game room, a piano lounge with a fireplace, and a 4,600-square-foot rooftop terrace, complete with barbeque areas and panoramic views. 20 percent of the building’s units are affordable housing.

The Manhattan West campus will be transected by a two-acre public park designed by High Line architects James Corner Field Operations, featuring year-round arts and events programming by Arts Brookfield which produces over 400 events globally. Over 200,000 square-feet of carefully curated food, retail and pop-up experiences will be available. Plans also call for a boutique hotel to be developed within Manhattan West

zaha exterior facade courtesy of tim schenck Hudson Yards
Zaha Hadid exterior

A Model of Energy Efficiency

Energy efficiency, sustainability and design are the most important trends for architects working with sophisticated glass architecture, and the demands are increasing continually, especially for large-area glass façades. AGC Interpane has responded to these trends with the widest and most comprehensive range of solar control glazing on the market.

The technical requirements for solar control glazing in sophisticated buildings include a low total energy transmittance, excellent thermal insulation, and the highest possible transparency. Visual qualities regarding color and reflectivity are also of great importance to designers. AGC Interpane is providing more than 2.2 million square feet of solar control glazing on five towers currently under construction, including 10, 15, 30, 35, and 55 Hudson Yards.

“Hudson Yards is the most prominent project we currently have,” said Marc Everling, Head of Marketing and Communications for AGC Interpane. “Our products ipasol neutral, ipasol platin and Stopray Vision were technically and aesthetically the perfect match for the project.“

AGC Interpane’s newest service for architects and investors, called “Coating on Demand,” allows architects to develop unique coated glass products for facades and windows tailored precisely to their needs. The result is a unique product that an architect and investor can use to create their own iconic building, as AGC will not use the same solution for any other project again.

Unparalleled Power Generation

H.O. Penn CAT Power Systems, a full-service power generation provider for New York, has installed approximately 36 megawatts of standby diesel generators at Related properties including 10, 15, 30, 35 and 55 Hudson Yards.

All generators are equipped with Tier 4 final emissions and are anticipated to be enrolled in a demand response program.  During times of peak electricity demand or an emergency, these generators will be utilized to reduce the strain on city’s electricity grid. Demand Response contributes to maintaining the reliability of New York’s power infrastructure, avoiding brownouts or blackouts caused by extreme weather or supply disruptions.  HO Penn, which has been involved with the Hudson Yards project for approximately three years provides a full project management team, support staff, as well as a full team of service specialists.

“With over 36 megawatts of standby power equipped for New York City’s demand response program this has been one of the most exciting projects that H.O Penn has had the honor of being a part of,” said Robert Muir, HO Penn Sales Engineer.

55 hudson yards looking west from 34th st courtesy of related oxford mitsui Hudson Yards
55 Hudson Yards, Looking West from 34th St.

High-End Building Management and IT Systems

TEC Systems is currently involved in the construction of 15 Hudson Yards, 35 Hudson Yards, and One Manhattan West. Projects range from the design and installation of building management systems to converged IT infrastructure.

The state of the art technology being installed supports BMS, DAS, Wi-Fi, telephony, electric sub-metering, video, access control and other systems vital to operations. TEC Systems holistic approach ensures that these building systems are securely and seamlessly working together from day one, and properly positioned to meet future needs.

“Converged IT infrastructure supports unified building technologies while simplifying commissioning, operation, maintenance, and complexity of equipment, cabling, labor and future modifications,” said Barry Fagan, Vice President, TEC Systems. “With lower CAPEX and OPEX costs, this provides a higher return on investment.”

The company’s services run the gamut of the industry, and include distinguished design/build support, as well as new construction plans and specifications. Utilizing product lines from Honeywell, Echelon, American Auto Matrix, and more, TEC Systems creates custom-made, state-of-the-art solutions for the most challenging building automation needs.

Source: commercial

Hudson Yards Stakeholders Dive into NYC’s ‘Newest Neighborhood’ at CO Event

What kind of work goes into rebuilding and renewing a massive chunk of Manhattan, spanning from the High Line up to Hell’s Kitchen and Eighth Avenue over to the Hudson River?

That was the question posed to a select group of developers, architects, engineers and officials helming the transformation of Manhattan’s Far West Side, who gathered at Commercial Observer’s “The Hudson Yards District: New York’s Newest Neighborhood” conference earlier this month to discuss the various commercial and infrastructure developments that are recreating an entire swath of the island.

The event, held on March 8 at law firm Herrick Feinstein’s offices at 2 Park Avenue near Murray Hill, was kicked off with remarks from Patrick O’Sullivan, a partner in the firm’s real estate department. O’Sullivan, a former executive at the New York City Economic Development Corporation, recalled how the development of Hudson Yards was preceded by the proposed West Side Stadium, which was part of the city’s unsuccessful bid to host the 2012 Summer Olympics. After the Olympic bid (which was awarded to London) failed, O’Sullivan said, New York “went to plan B—and it was definitely a good one.”

That “plan B”—most significantly the Hudson Yards mixed-use mega-development helmed by Related Companies and Oxford Properties Group—was the subject of the morning’s first panel, which featured Andrew Cantor, a senior vice president at Related; Andrew Werner, a senior associate principal at architecture firm and Hudson Yards master planner Kohn Pedersen Fox Associates; Colin Brown, a principal at engineering firm Thornton Tomasetti; and Mitchell Moinian, a principal at The Moinian Group, which is developing its own Hudson Yards office tower at 3 Hudson Boulevard.

With Phase 1 of Related and Oxford’s 28-acre Hudson Yards project roughly one year away from opening, Cantor recalled the process that has facilitated the evolution of a neighborhood that historically was “always seen as too far away” from the rest of Manhattan into one that has “changed the way many people view” the possibilities for development in New York City.

Werner noted the “mixed-use” aspect of the project, which seeks to bring residential, commercial and retail uses all within close proximity of each other with the goal of building a “24-hour neighborhood.” From an architectural perspective, Werner said the multi-tower development sought a design with “texture” that would “drive people to want to be there”—a daunting task, considering the site was a “tabula rasa,” or blank slate, that forced KPF to draw on its experiences building “large-scale cities from scratch” in Asia.

Brown, whose firm handled engineering for much of the Related and Oxford project, cited the “great challenge” of building on a site that was an operational railyard—constraints that made it “hard not to be innovative [in order] to make something work,” and called for out-of-the-box solutions like suspending the development’s retail podium above the railyards and building from there.

Moinian was quick to point out that while the Related and Oxford project occupies several square blocks south of West 34th Street, half of the Hudson Yards district at large is located above the thoroughfare, stretching up to West 41st Street. The district at large, he said, will provide newfound “connectivity from Midtown [down] to the Meatpacking District.”

While acknowledging that The Moinian Group’s 2-million-square-foot 3 Hudson Boulevard, which sits on the north side of West 34th Street, won’t be able to take advantage of the “mini-city infrastructure in place for [Related and Oxford’s] mini-city,” the tower will benefit from the development of Hudson Boulevard Park, which will run from West 34th to West 37th Streets, Moinian said. The developer has commenced work on the foundation of the FXCollaborative-designed office building “on spec,” with no advance agreements with office tenants in place—something that shows the extent to which The Moinian Group “obviously believe[s] in the neighborhood,” he added.

hudson yards panels 90 Hudson Yards Stakeholders Dive into NYC’s Newest Neighborhood at CO Event
From left: Robin Stout, Michael Evans and Henry Caso at CO’s “The Hudson Yards District: New York’s Newest Neighborhood” conference on March 8. Photo: Aaron Adler/for Commercial Observer

The second and final panel of the morning focused on the area’s infrastructure, and the developments and improvements taking place to bolster the Hudson Yards district’s transportation offerings and connectivity. Those include the ambitious redevelopment of the James A. Farley Post Office Building into the new Moynihan Train Hall—a project decades in the making that seeks to build “the Grand Central Terminal of the West Side” while relieving the notorious congestion that affects the neighboring Pennsylvania Station, according to Michael Evans, the president of the Moynihan Station Development Corporation.

Work on Moynihan Train Hall is scheduled for completion in early 2021, and Evans cited the logistical obstacles involved when “working within the busiest train station in the Western Hemisphere.” But the project is expected to increase concourse capacity at Penn Station “by 50 percent overnight,” Evans said, and build momentum for further, “critical” infrastructure improvements at the transit hub deridingly referred to by New York Governor Andrew Cuomo as “the catacombs.”

Further west, the Jacob K. Javits Convention Center is in the midst of its own major overhaul, as detailed by Robin Stout, the president of the New York Convention Center Development Corporation. The four-year, $1.2 billion project seeks to expand the convention center’s roughly 400,000 square feet of exhibition space to 500,000 square feet in order “to attract the largest shows,” Stout said.

The expansion will also add 50,000 square feet of new meeting room and breakout room space, as well as a new 6,000-person capacity ballroom that will be “the largest ballroom in the northeast,” according to Stout. There will also be upgrades to the Javits Center’s infrastructure, including a new three-story electrical transformer building and a new truck-marshalling facility that will be built on West 40th Street.

“We don’t want people to think of Javits as low-rise protection for Hudson Yards’ river views,” Stout said. He added the convention center, and the commerce it will bring to the Far West Side, will spur further hotel and retail development and help Hudson Yards achieve its goal of becoming “a vibrant 24-hour neighborhood.”

Source: commercial

George Washington Immigration Group Debuts Loan Platform for EB-5 Debt [Updated]

George Washington Immigration Group has secured the capital to provide $1.25 billion in first-lien construction loans and bridge loans to developers seeking EB-5 financing, Commercial Observer can exclusively report.

The firm declined to specify the source behind the commitment, citing a confidential arrangement.

“We will now be able to provide approved projects with … bridge capital while they seek financing under the EB-5 program,” said Evan Stoopler, a George Washington managing director.

The EB-5 program, administered by U.S. Citizenship and Immigration Services, offers visas for foreigners who make investments in American enterprises. To qualify, foreign entrepreneurs must invest at least $1 million (or $500,000, if the investment is in a rural area) in projects that stand to create full-time jobs for 10 or more workers.

The arrangements have increasingly appealed to U.S. real estate developers looking for financing of late. Rates tend to be more attractive than those offered by domestic lenders, and foreigners seeking EB-5 visas are often less intent on seeking an equity reward for investment. But it has often difficult to line up foreign investors with shovel-ready projects in time.

That’s where the George Washington company’s bridge loans will come in, said one of the group’s managing partners, Steve Anapoell. His firm plans to use the $1.25 billion pool as interim financing for developers while longer-term EB-5 partners can be matched.

“I am constantly called to ask if I have money to provide as bridge,” Anapoell said. “Developers are hungry for this. [They ask me] ‘can you give bridge? Do you know anyone who can give us bridge?’ They need certainty in the capital stack.”

When George Washington’s short-term financings expire, the company hopes to stand ready to roll those bridge loans over into debt funded by EB-5 applicants. But borrowers will not be bound to refinance through George Washington, Anapoell said.

The company’s members have structured over $2 billion in EB-5 financings, including for Related CompaniesHudson Yards development, for Silverstein Properties30 Park Place, and for Extell Development and Lightstone Group.

Update: This story has been edited to include that the financing will be available for construction loans and bridge loans.

Source: commercial

City Set for 33-Year High in New Office Supply Through 2019: C&W

Manhattan is set to see more new office supply come online over the next two years than at any point since the mid-1980s—a dynamic that will bolster the city’s aging office stock but could hold asking rents in check and keep landlord concessions at historic highs, according to Cushman & Wakefield.

Led by sprawling Far West Side megaprojects like Hudson Yards and Manhattan West, the 12.6 million square feet of new office construction due to hit the market over the course of 2018 and 2019 is the most of any two-year period since 1985 to 1986, the brokerage said in a press briefing today overviewing the state of the city’s office market.

While 7.3 million square feet of that space has already been preleased, it is part of an enormous 22.1-million-square-foot influx in new office supply set to arrive in Manhattan over the next five years—13.7 million square feet of which is still available for lease, C&W said. That influx is already placing downward pressure on asking rents for the city’s existing office stock and is expected to keep concessions at “historical high levels,” according to the brokerage.

Richard Persichetti, C&W’s vice president of research for the tri-state region, said that while the new construction is a positive considering the city’s “aging office stock,” it will exacerbate a dynamic that has seen “more tenant improvement allowances than ever before” and could cause a hike in vacancy rates as new space is delivered. Manhattan’s overall office vacancy rate dropped 0.4 percent to 8.9 percent at the end of 2017—”its lowest level in 18 months,” he noted.

New office construction is also commanding a 27.5 percent premium over existing Class A space, according to the C&W report, with the new development consequently driving down rents for the city’s existing office supply. Overall office asking rents in Manhattan fell 0.8 percent in 2017 to $72.25 per square foot—though Persichetti said rents should be “flat to increasing” in 2018 as the new, “higher-priced space” comes online.

In total, Manhattan saw 30.5 million square feet of new leasing activity last year, which was up 16 percent from 2016. Midtown office leasing was up 10.4 percent to 19.7 million square feet, while the Downtown market saw a 63.6 percent jump to 5.8 million square feet. The supply-constrained Midtown South saw a 2.1 percent increase in new leasing activity to 5 million square feet.

Leasing activity was characterized by a sizable uptick in the volume of major, 100,000-plus-square-foot deals; the 56 such leases signed last year were the most on record, according to C&W, and accounted for 40 percent of all Manhattan leasing activity—with 22 of those deals for 250,000 square feet or more.

The financial sector, which saw employment levels in the city rise to a 16-year high in 2017, drove much of the new leasing activity; financial industry tenants leased 5.5 million square feet of space last year, up 60 percent from 2016, the brokerage said. The technology, advertising, media and information (TAMI) sector, meanwhile, softened in terms of employment—losing more than 9,000 jobs through the first 11 months of the year—but still saw a 12 percent increase in leasing activity to 4.3 million square feet, according to C&W.


Source: commercial

After Nabbing $238M Daiwa Construction Loan, HAP Touts Chelsea’s Attributes

Eran Polack is happy to be in Chelsea.

After sealing a $238 million construction loan for his new two-building residential complex at 213-227 West 28th Street, between Seventh and Eighth Avenues, the HAP Investments chief executive officer told CO that he’s bullish about the neighborhood’s prospects.

“We really like the area,” Polack said. “It’s close to the Fashion Institute [of Technology], Whole Foods and Midtown Tennis. The [short] distance to the Google offices, to Hudson Yards and to Madison Square Garden make it very exciting.”

That location has given Polack a rosy outlook for the buildings’ revenue.

“I am very, very confident in the rent,” Polack said. “I don’t think there are a lot of buildings [going up] in Manhattan between Seventh and Eighth Avenues.” He added that he expects strong demand from students at FIT and families whose children attend Avenues, a school at 259 10th Avenue that serves children from pre-K through 12th grade.

Daiwa House Texas, an American subsidiary of Daiwa House Group, the largest homebuilder in Japan, will provide the floating-rate, 30-month loan—the company’s first in New York, which will have an interest rate of Libor plus five percent.

The complex’s two buildings, which will be split among rental apartments and condominiums, will cover eight contiguous lots, the most sprawling such site developed in recent Manhattan history, according to HAP. The condo building will feature 88 apartments, and the rental building 112.

Plans for the site also include ground-floor and cellar-level retail space in the 20-story apartment towers. Residential perks include a full 17,000-square-foot floor for amenities, and an automated parking garage where, according to HAP, robots will automatically retrieve residents’ cars from nearly 50 parking spaces.

The architecture firm DXA studio has designed the complex, and construction—excavation for which is already underway—will be managed by Rinaldi.

Polack expects construction to finish by the end of 2019, and Douglas Elliman’s Fredrik Eklund—famous for his role on the television show Million Dollar Listing—will manage sales and marketing for the apartments.

Daiwa House Texas could not be reached for comment.

Earlier this autumn, Polack found himself in an embarrassing legal snit when as Israeli court found that he lied in 2010 about the value of the diamonds he lost in a Hong Kong robbery. He does not face criminal charges. Polack declined to comment on the matter through a spokeswoman, who said that “the civil case is still on appeal in Israel.”


Source: commercial

Cove Lands $479M Construction Loan for Hudson Yards Office Tower

Cove Property Group and its equity partner, Boston-based hedge fund Baupost Group, have secured a whopping $479 million non-recourse loan for construction at 441 Ninth Avenue, which they will rebrand as Hudson Commons, Commercial Observer has learned.

Apollo Global Management and its subsidiary Apollo Commercial Real Estate Finance provided the behemoth loan.

HFF negotiated the financing on behalf of Cove. Michael Gigliotti, a senior managing director at the brokerage, declined to give its terms, but said that it follows the contours of a typical construction loan.

The Cove-Baupost partnership bought the property, situated between West 34th and West 35th Streets, for $330 million in 2016 from insurer EmblemHealth, which had occupied the entire building. The current structure comprises 423,000 square feet on eight stories, but Cove plans to redevelop the property by adding an additional 17-story structure atop the building, expanding the total square footage to approximately 700,000.

Internal demolition has already begun, according to Kevin Hoo, a managing partner at Cove. Construction will begin on the new tower in January, he said, and the entire building will be tenant-ready by the end of summer 2019.

Meanwhile, Cove hopes to begin leasing the lower eight stories by the end of next year, even as construction continues on the tower. Cove has maintained the building’s certificate of occupancy, which Hoo said will make the lease-up relatively hassle free.

“This is a very diverse type of building that should attract all types of tenants,” Gigliotti said, noting that its location between Hudson Yards, to the west, and Penn Station, to the east, would make it an attractive destination for commuters.

As a result, Gigliotti said, lenders competed fiercely to back the project.

“It was a highly contested process,” Gigliotti told CO. “All the big names in the construction lending space were interested.” Apollo, he added, had already been involved in the project as a partner that funded, along with Deutsche Bank, the $220 million bridge loan for the property Cove inked in 2016.

Gigliotti noted that Apollo also offered “new features” in its financing package, but declined to give details.

Hoo said that a variety of companies have already courted Cove for office space at Hudson Commons.

“We’ve been entertaining a number of large tenants,” the Cove founder said. “They include fashion, technology, media and infotech [companies], along with a bunch of traditional banks.”

Because the new tower will have a significantly smaller cross section than the eight-story original building, Cove will be able to offer a variety of floor-plan sizes, which Hoo listed as a key element. Each floor of the existing building offers 50,000 square feet; the new tower will sport approximately 16,000 square feet per floor.

“Our floor-by-floor lease-up plan meant that we could diversify [our tenants] and mitigate the downside risk,” Hoo said. “That business plan helped lenders get comfortable.”

HFF’s deal team was led by Gigliotti, Geoff Goldstein and Michael Tepedino. Gigliotti said that Ben Gray, who was unavailable for comment, spearheaded the financing for Apollo.

The Baupost Group, Cove’s equity partner, is a secretive hedge fund that the Wall Street Journal called one of the world’s largest in 2014, when it managed $27 billion. The fund has made headlines recently for confirming that it owns nearly $1 billion of troubled Puerto Rican debt. Officials at the firm did not respond to a request for comment.

Hudson Commons is the second major New York property for Cove, which was founded in 2015. Last year, the company purchased 2 Rector Street, a 26-story, 470,000 office tower in lower Manhattan, and rebranded it as 101 Greenwich.


Source: commercial

[Video – Commercial Observations] The Big Picture: Q&A With Arthur Mirante

Commercial Observer sits down with Avison Young’s Arthur Mirante to discuss Hudson Yards, big moves in the major brokerage firms and how they landed the Thor portfolio.

Missed last month’s video? We spoke with Douglas Durst about the infamous debt clock at 1 Bryant Park and how the Durst Organization is attracting tenants to midtown. View the video here.

About Berdon LLP, Accountants and Advisors: Berdon LLP is ranked among the nation’s top CPA and advisory firms. With nearly 400 professionals, clients benefit from our comprehensive array of accounting, tax, financial, and management advisory services. Through specialized expertise and a real estate team of more than 100 professionals, we advise many of the country’s prominent real estate entities and are one of the largest Real Estate Practices in the nation. 


Source: commercial

José Andrés-Helmed, 35K-SF Food Hall to Open at 10 Hudson Yards

Celebrity chef José Andrés is the latest purveyor of cuisine to commit to an ambitious new concept at Related Companies and Oxford Properties Group’s Hudson Yards megaproject—with AndrésThinkFoodGroup agreeing to open a 35,000-square-foot, Spanish-themed food hall at 10 Hudson Yards.

Andrés is teaming with brothers and renowned Spanish chefs Ferran and Albert Adrià on the indoor-outdoor concept, which will anchor 10 Hudson Yards’ food offerings and represents the Adrià brothers’ first endeavor in the U.S.

The space in question was previously being eyed by restaurateur Danny Meyer as a possible location for Meyer’s own food hall, according to the New York Post, which first reported the news of the Andrés-helmed concept.

Asking rent, length of lease and the brokers on the deal were not disclosed. A Related spokeswoman did not return a request for comment.

Andrés joins a collection of high-profile chefs and restaurateurs who are bringing around 25 different restaurants and establishments to Hudson Yards in the coming years, including the likes of Thomas Keller, David Chang, Juan Santa Cruz and Michael Lomonaco.

While the new Spanish-themed food hall will be at 10 Hudson Yards, most of the new food concepts arriving at the Far West Side megadevelopment will be located at the Shops and Restaurants at Hudson Yards—the seven-story, 1 million-square-foot retail center anchored by Neiman Marcus that is slated to open late next year.

Kenneth Himmel, the president and chief executive officer of Related Urban (Related’s mixed-use development division), and celebrity chef Keller have been co-curating the culinary mix at Hudson Yards.

That selection will also include Chang’s newest endeavor, which will occupy 5,000 square feet at the Shops and Restaraunts and will feature a formal dining room as well as a new takeaway concept, according to a Related press release.

“I think [Hudson Yards is] going to have a world-class food program and I’m really honored to be part of that,” the Momofuku restaurateur said in a statement in the press release.


Source: commercial