Hudson Yards

BlackRock Commits to 850K SF at 50 Hudson Yards in Long-Awaited Deal



BlackRock has committed to anchor Related Companies and Oxford Properties Group’s 50 Hudson Yards, the yet-to-be-built tower on the Far West Side.

The massive private equity firm has pledged to take 850,000 square feet across 15 floors of the 2.9-million-square-foot property, according to a press release from the developers. BlackRock’s lease will be for 20 years, according to The New York Times, which first reported news of the commitment. It wasn’t immediately clear what the developers were asking for rent.

“We’re proud to have our name on the marquee of our future home, 50 Hudson Yards,” Rob Goldstein, the chief operating officer of BlackRock, said in a statement. “This state-of-the-art building will be equipped with the design, technology and resources to attract and retain the best talent in the industry to serve our clients.”

BlackRock, currently based at 55 East 52nd Street between Park and Madison Avenues, is slated to move into the 58-story, full-block tower once construction is completed in 2022. Work is slated to start on the property next year.

“BlackRock is one of the world’s most trusted investment firms and known for its forward-thinking leadership team,” Related Chief Executive Officer Jeff Blau said in prepared remarks. “Their decision to relocate after nearly three decades on and around Park Avenue is another strong vote of confidence in our collective vision for Manhattan’s West Side. They will join an unprecedented collection of global influencers in media, fashion, beauty, tech, law and finance at Hudson Yards.”

Peter Riguardi, Kenneth Siegel, Matthew Astrachan and Joseph Messina of JLLare representing BlackRock, while Stephen Winter of Related represents the ownership group in-house.

The firm had been mulling a move to either 50 Hudson Yards or Tishman Speyer’sThe Spiral—a planned 3-million-square-foot skyscraper a few blocks to the north.

The developers have also rolled out the design for the property, for which it tappedFoster + Partners, headed by Sir Norman Foster. BlackRock employees will have an exclusive elevator that they will be able to access on 10th Avenue. Floor plates will be no smaller than 50,000 square feet, the release indicates, and will each be able to hold 500 people.

That ability to handle density might have played a role in the financial firm’s decision, since the move also includes a deal with New York State. A separate press release today announced that Empire State Development Corporation and BlackRock had reached an agreement that the equity behemoth would increase its workforce by 700 employees and retain an existing 2,672 workers over a 10-year period as part of the move. During that time, the state-run ESDC will grant BlackRock about $25 million in performance-based tax credits.

Related purchased the last parcel necessary for 50 Hudson Yards in January, paying$152.3 million, as Commercial Observer reported at the time. The plot, with an official address of 427 10th Avenue, was home to a since-shuttered McDonald’s.

Meanwhile, its first tower, 10 Hudson Yards, started taking in its first tenants—which include Coach, L’Oreal and SAP—this May. Construction is underway at the neighboring retail complex, The Shoppes & Restaurants at Hudson Yards, as well as the 90-story 30 Hudson Yards.

BlackRock's relocation would shake city's office market and policymakers

BlackRock's plan to trade Park Avenue for Hudson Yards reveals the cracks in the commercial real estate landscape.

BlackRock's plan to trade Park Avenue for Hudson Yards reveals the cracks in the commercial real estate landscape.

Whenever BlackRock speaks, the markets quake. When BlackRock picks a location for its headquarters, the city’s office market will tremble. And the de Blasio administration could find itself under an unwelcome spotlight.

Consider this a tale of the city’s three most important office markets.

BlackRock—one of the world’s largest money managers—occupies two buildings just off Park Avenue, once the most prestigious address in midtown. But employers including Citigroup and Major League Baseball have been leaving midtown east because the buildings there are old—66 ½ years, on average—and outmoded for the way large corporations configure their operations.

BlackRock considered and then ruled out anchoring Larry Silverstein’s 2 World Trade Center tower. In January, Fox and News Corp. similarly backed out of an almost-completed deal to move to the building, which offers low rents through large city subsidies.

Now BlackRock is eyeing the far West Side. It could relocate to Hudson Yards, the great legacy of the Bloomberg administration, or to a tower that Tishman Speyer is planning one block north. It would be in good company at either location, as Hudson Yards’ developer, the Related Cos., haslured a list of well-known names: Coach, Milbank Tweed, KKR, SAP and Time Warner, to name a few. They are moving into the most modern office space anywhere, helped by significant tax breaks.
Although BlackRock might stay in midtown, as Fox and News Corp. did, the odds of a move seem good.

Here’s what the BlackRock story tells us about the city’s three major office districts:

  • Downtown continues to struggle to lure the high-profile, big-name tenants it needs to fill the new skyscrapers at the World Trade Center site. Whether it can do so remains an open question, especially if the city’s economy weakens.
  • The far West Side is established as the go-to location for successful companies that want to make it clear they are the best in their business. Its future seems secure.
  • Midtown east is in danger of seeing its tenants slip away unless the de Blasio administration can finally push through a rezoning to allow a handful of new office buildings and modernization of old ones—something the Bloomberg administration failed at three years ago.

The de Blasio administration did green-light the SL Green Tower opposite Grand Central Terminal in a nifty deal that produced at least $220 million in improvements at the transit hub. But one building won’t solve the problem.

The latest de Blasio proposal seems to have broader support, possibly because it is forgoing money for transit improvements to instead help the landmark churches in the area sell their air rights—a decision made to neutralize a potential opponent. But it has been three years since the Bloomberg midtown east effort crashed. Time is a-wasting for the help the area needs.

BlackRock targets Hudson Yards for new HQ

Asset management giant is looking for as much as 1M sf of office space

A rendering of the Spiral and 50 Hudson Yards (Inset: Larry Fink)

A rendering of the Spiral and 50 Hudson Yards (Inset: Larry Fink)

BlackRock has set its sights on Hudson Yards for a new headquarters as big as 1 million square feet.

The company currently rents around 700,000 square feet in two buildings – Fisher Brothers and Soho China’s 55 East 52nd Street and Rudin Management’s 40 East 52nd Street. The lease at 55 East 52nd is due to expire in 2023. In February, The Real Deal reported BlackRock had tapped a JLL team led by Peter Riguardi to find a new, larger office space.

By July, the company had shortlisted three possible new locations: The Durst Organization’s One World Trade Center, the Related Companies and Oxford Properties Group’s Hudson Yards, and Brookfield Property Partners’ Manhattan West. The company is also still holding onto the option of staying at its current location.

But, according to Crain’s, BlackRock is now considering two proposed towers in the Hudson Yards neighborhood. One is 50 Hudson Yards, developed by Related and Oxford, which is located on West 33rd Street and 10th Avenue. The other is Tishman Speyer’s building, the Spiral, which is planned for one block north of 50 Hudson Yards and will span 2.85 million square feet.

Norway’s Largest Lender Relocating North American HQ to 30 Hudson Yards

Norwegian financial services giant DNB Bank has signed a 44,517-square-foot deal at the future skyscraper at 30 Hudson Yards for its North American headquarters, landlord Related Companies announced today.

A rendering of 30 Hudson Yards. : Related Companies. 

A rendering of 30 Hudson Yards. : Related Companies. 

The firm will occupy the entire 68th floor of the planned 90-story tower, which Related and Oxford Properties Group hope to complete in early 2019. Asking rents in the building are north of $100 per square foot, according a spokeswoman for Related.

DNB expects to relocate from the MetLife Building at 200 Park Avenue South adjacent to Grand Central Terminal. The lease will run for 15 to 20 years, pending certain “conditions,” Bloomberg News reported, without elaborating. 

“After more than 40 years in traditional Midtown Manhattan, we are very excited to be moving to the West Side and joining Related at 30 Hudson Yards, in what will be a wonderful, new, internationally significant building and a truly vibrant New York neighborhood,” Giacomo Landi, an executive vice president of DNB, said in prepared remarks. “We fully expect that establishing our new office space in Hudson Yards will help us attract and retain key talent.”

The move to Hudson Yards is part of DNB’s plans to modernize all of its office space worldwide, a process that began in 2012 with its headquarters in Oslo. There DNB relocated 4,000 people from more than 10 locations to one modern office complex. DNB has also moved its outposts in London, Singapore and Stockholm in recent years.

Don Preate and Frank Coco of Cushman & Wakefield represented DNB in the transaction, while Stephen Winter of Related represented the landlords. Preate and Coco did not immediately respond to a request for comment via a spokeswoman.

“We particularly appreciate the focus that DNB places on environmental stewardship and employee wellness, both areas we have invested in heavily,” Jay Cross, the president Related Hudson Yards, said in a statement. “DNB will complement our world-class roster of tenants.”

The 1,296-foot tall 30 Hudson Yards has already attracted major firms including Wells Fargo Securities, Time Warner and investment firm Kohlberg, Kravis & Roberts.

Commercial Observer, Liam La Guerre, Sept. 22, 2016, 3 p.m.

Related Woos Digital Trading Provider to 55 Hudson Yards From Fisher Brothers’ 299 Park

MarketAxess, which provides an electronic trading platform for investors, is the latest firm to decide to move to Related Companies’ planned 55 Hudson Yards office building.

The tenant has signed an 83,000-square-foot lease at the 1.3-million-square-foot office tower, which will be a part of the overall 17-million-square-foot Hudson Yards complex. Related is partnering with Mitsui Fudosan America and Oxford Properties Group to build the tower.

The terms of the deal were not disclosed. MarketAxess will occupy three full floors in the future building at 11th Avenue between West 33rd and West 34th Streets, according to The New York Post, which first reported news of the deal. It was not immediately clear on which floors the company will be based.

“Hudson Yards represents a perfect fit for our corporate mission to deliver innovative technology solutions to our clients,” Richard McVey, the chief executive officer of MarketAxess, said in a statement. “It is transformative, exciting, efficient and environmentally friendly.”

MarketAxess will relocate its global headquarters from Fisher Brothers’ 299 Park Avenue between East 48th and East 49th Streets, where it has the entire 27,900-square-foot 10th floor, according to CoStar Group. The firm will move 250 employees into 55 Hudson Yards after it is completed in 2018, a Related spokeswoman told Commercial Observer without providing further details.

 By Liam La Guerre, Commercial Observer, Aug. 23, 2016, 2 p.m.

BlackRock narrows HQ search down to three locations

One World Trade Center and BlackRock’s Larry Fink

One World Trade Center and BlackRock’s Larry Fink

Asset manager BlackRock narrowed its list of potential new headquarters locations down to three: The Durst Organization’s One World Trade Center, the Related Companies and Oxford Properties Group’s Hudson Yards and Brookfield Property Partners’ Manhattan West.

The company currently occupies around 700,000 square feet in two buildings – 55 East 52nd Street and Rudin Management Company’s 40 East 52nd Street – where its lease expires in 2023. The Real Deal reported in February that it tapped a JLL team headed by Peter Riguardi to find a new, larger office space.  According to the Wall Street Journal, BlackRock is looking to lease 850,000 square feet at a possible annual rent of around $60 million.

One World Trade Center was 69 percent leased as of early June, and landing Blackrock would bring the 3 million-square-foot tower close to full occupancy. Hudson Yards, meanwhile, has already landed major finance tenants Wells Fargo and fund manager KKR.

BlackRock's employee count has grown from 5,341 at the end of 2008 to currently 13,000. As banks and other Wall Street firms suffered from the aftermath of the 2008 financial crisis and stricter financial regulation, asset managers like BlackRock and the Blackstone Group have captured market share.

[WSJ] – Konrad Putzier,

The Real Deal, Asset manager considering 1 WTC, Hudson Yards and Manhattan West
July 27, 2016 05:40PM



Steve Cohen’s personal fund leases 175K sf at 55 Hudson Yards

Billionaire to relocate from 330 and 510 Madison Avenue

55 Hudson Yards (Credit: Kohn Pedersen Fox) (inset: Steve Cohen)

55 Hudson Yards (Credit: Kohn Pedersen Fox) (inset: Steve Cohen)

Steven Cohen is so rich that he needs a 175,000-square-foot office to manage his personal wealth.  Naturally, when you’re that rich, you can easily afford the asking rents at Hudson Yards.

Point72 Asset Management, the company charged with managing the hedge funder’s $11 billion fortune, signed a 175,000-square-foot lease at the Related Companies and Mitsui Fudosan America’s 55 Hudson Yards. The 1,000-employee company will move there from its current spaces at 510 and 330 Madison Avenue in 2018. That’s also the year the 1.3 million-square-foot, KPF-designed office tower is expected to open.

Last year, Japanese investment firm Mitsui Fudosan bought a stake in 55 Hudson Yards for $258.8 million In April, law firm Milbank, Tweed, Hadley & McCloy signed a letter if intent to lease 250,000 square feet at the tower.  The largest private real estate development in the U.S., Hudson Yards will feature 17 million square feet of commercial and residential space.

Steven Cohen became a billionaire through the hedge fund he founded, SAC Capital. After traders at the firm were convicted of insider trading in 2013, SAC Capital agreed to pay a $1.8 billion fine and was barred from managing third-party funds.

Earlier this year, Cohen reached a personal settlement with the Securities and Exchange Commission that barred him from managing third-party money until 2018.