By Orlando Lee Rodriguez
The Related Cos. is moving its corporate headquarters to the new Hudson Yards development, chairman Stephen Ross confirmed this week.
“Hudson Yards will be the new heart of New York,” Ross said in a statement to Real Estate Weekly. “With all the elements that make this city great, it is the ideal location for Related’s corporate headquarters.”
The real estate powerhouse hinted the announcement could be a prelude to a series of big deals coming up at the 26-acre development which broke ground last week.
“We are in advanced discussions with numerous large-scale corporate tenants,” he said. “[We] already have commitments for 80% of the South Tower.”
Coach Inc. is the anchor tenant for the South Tower with a 750,000 s/f office condo in the bottom third of the building. French cosmetics brand L’Oreal SA is also rumored to be eyeing space in the tower and German software maker, SAP, has also taken a look, according to the New York Post.
Related Companies, a privately-held, real estate development, management and finance company, plans to move into Hudson Yards ‘E Tower’ once it is completed in 2017.
Ross also confirmed that he plans on moving his personal residence to Hudson Yards from the Time Warner Center. His apartment would be on the top floor.
The 60-story E Tower will rise on the corner of West 33rd Street and 11th Avenue and will be designed by David M. Childs of the architectural firm Skidmore, Owings & Merrill.
Office leasing for Hudson Yards is being handled by Robert Alexander, Robert Stillman and Howard Fiddle of CBRE. Dean Shapiro, of Oxford Properties Group, Hudson Yards co-general partner, is working alongside the leasing team and overseeing Oxford’s 50% investment in the project. Retail leasing is being handled by Webber Hudson of Related Urban.
Built on a platform on top of the existing MTA rail yards, the mixed use E-Tower will contain retail and office space as well as residential condominiums.
Presently, Hudson Yards South Office Tower is under construction on the solid ground, south side of West 30th Street, slightly west of 10th Avenue. The company officially broke ground on it last week.
The platform that will cover the existing MTA rail yards and where the majority of buildings will be located, will be erected as more tenants commit. So far, Coach Inc. and The Related Companies are the only commercial tenants that have been publicly announced with commitments for Hudson Yards.
Related’s departure from its long-time headquarters at the Time Warner Center will leave a gaping hole there that would need to be filled. The company indicated that no determination has been made as to whether it will keep all or part of its current Columbus Circle space.
Current listed office tenants at the TWC are Related, AREA and Time Warner whose lease is also set to expire in 2017, according to the Wall Street Journal.