Affiliate of Related Companies purchases 1.5 million square feet of office space in iconic tower WarnerMedia to enter into long-term lease through 2034.
Related Companies, the developer of Hudson Yards, today announced that one of its affiliates has entered into a contract to purchase WarnerMedia’s approximately 1.5-million-square-foot office condominium at 30 Hudson Yards for approximately $2.2 billion. WarnerMedia became a partner in the development of the building in 2014. As part of the new agreement, Related will enter into a long-term lease-back until early 2034. The space will house WarnerMedia’s global headquarters across 26 floors. The parties expect the transaction to close late in the second quarter.
The LEED Gold-designed 30 Hudson Yards by acclaimed global architects Kohn Pedersen Fox Associates (KPF) offers state-of-the-art commercial office space and a direct connection to The Shops & Restaurants at Hudson Yards and a future direct underground connection to the No. 7 subway station. The 2.6-million-square-foot building features panoramic views of the city skyline and Hudson River, a dramatic ground floor lobby with an original installation by renowned artist Jaume Plensa and entrances off Tenth Avenue and Hudson Boulevard, directly adjacent to the subway entrance to the No. 7 subway. WarnerMedia employees have already moved into the building that is also home to KKR, Wells Fargo Securities, DNB Bank and Related’s corporate offices, as well as the city’s highest outdoor observation deck, Edge. 30 Hudson Yards is located at the epicenter of Manhattan’s most exciting new 24/7 mixed-use neighborhood, which will continue to take shape over the next decade.
Related Companies CEO Jeff Blau said, “Hudson Yards has shifted the center of gravity of New York City, bringing visionary business leaders, dynamic retail, hotel and cultural amenities and gracious public space that welcomes the public to visit and enjoy. 30 Hudson Yards was planned as one of the most iconic office buildings in New York City and its execution has exceeded even our high expectations.”
The Hudson Yards neighborhood, including the Public Square and Gardens, a new five-acre public space; its centerpiece, an interactive landmark Vessel; and The Shops & Restaurants, a one-million-square-foot retail center featuring a collection of more than 100 diverse shops and culinary experiences, officially opened to the public last month, marking a historic moment in the City of New York. Tenants have begun moving into 55 Hudson Yards and 30 Hudson Yards, and residential occupancy is underway at Fifteen Hudson Yards. 10 Hudson Yards opened in May of 2016. The opening of Hudson Yards, built atop the MTA’s John D. Caemmerer West Side Storage Yard, brings together for the first time the West Side and the neighboring districts of Chelsea and Hell’s Kitchen.
Hudson Yards is home to industry leaders across nearly every business sector. 10 Hudson Yards is home to Guardian Life Insurance Co., L’Oréal USA, Tapestry Inc., The Boston Consulting Group, SAP, VaynerMedia, Intersection and Sidewalk Labs. 55 Hudson Yards is home to Boies, Schiller & Flexner, Engineers Gate, HealthCor Management, Milbank LLP, Point72 Asset Management, Silver Lake, Third Point LLC, MarketAxess and Mount Sinai Health System. 35 Hudson Yards will be home to Equinox’s headquarters and HSS. 50 Hudson Yards will be home to BlackRock’s world headquarters.
A model for the 21st century urban experience, Hudson Yards is an unprecedented mix of buildings, parks, utilities and public spaces that combines to form a connected, responsive, clean, reliable and efficient neighborhood. Planned as the largest LEED-certified neighborhood in New York City, Hudson Yards is home to a first-of-its-kind microgrid and two cogeneration plants that will save 24,000 MT of CO2e greenhouse gases from being emitted annually by generating electricity and hot and chilled water for the neighborhood—more than twice as efficiently as conventional energy sources. Additionally, nearly 10 million gallons of stormwater will be collected from building roofs and public plazas, then filtered and reused in mechanical and irrigation systems. The development of Hudson Yards also provides for over 1,000 new or permanently preserved affordable units onsite and in the neighborhood, 14 acres of public space and a new K-8 public school.
Hudson Yards is an economic engine for New York City, already contributing more than $10 billion to the City’s Gross Domestic Product during construction and serving as a significant source of revenue to the MTA. It is expected to pay the MTA $2.36 billion during construction and $66 million annually. It also expects to pay almost $100 million per year in tax revenue that will be available for debt service on the bonds issued for the No. 7 Subway line extension—a truly successful public/private partnership. Once fully developed, Hudson Yards is expected to contribute nearly $19 billion annually to New York City’s Gross Domestic Product (GDP) and nearly $1 billion annually in State and City taxes. The companies and buildings at Hudson Yards will bring over 57,000 jobs to the new West Side neighborhood and Hudson Yards also estimates that, over the next six months, upwards of 600 new jobs will be filled by the developers and management team to provide essential services at the development, most of whom will be represented by SEIU 32BJ, plus thousands of additional jobs at restaurants and other campus businesses.
WarnerMedia was represented by Cushman & Wakefield U.S., Inc.
Related Companies is a global real estate and lifestyle company defined by innovation and the most prominent privately owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,800 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, and The Grand and Related’s Santa Clara development in California. Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. Related also owns Equinox® Fitness Clubs and SoulCycle further expanding the company's capabilities into the health and fitness arena and enhancing the value of its properties through an exclusive, branded amenity and lifestyle offering. For more information about Related, please visit www.related.com.