Tishman Speyer Buys Potential "Hudson Spire" Site
Tishman Speyer Properties recently purchased two parcels north of the Hudson Yards development site for a whopping $438 million. This large purchase is considered Tishman Speyer’s first major property acquisition since the market crash in 2008. The company had been buying primarily foreign real estate in Europe, Brazil and China. Their U.S. property purchases were mainly in California and Chicago, until now.
The $438 million divides into a multi-purchase of several plots. Speyer Properties paid $238 million for the 435 10th Avenue parcel , which was owned by the Rosenthal Family. The developer then shelled out $200 million to the Sherwood Equities for two more parcels located at, West 35th Street and 10th Avenue, and West 34th Street and Hudson Yards Boulevard.
The buildings will be made into office towers with retail spaces. “We think we’re entering the sweet spot of office development in New York,” said Rob Speyer to WSJ.
Many developers are jumping in on the hot New York City office market. The office market is finally picking up speed after a slow post-crash market recovery. In 2013 there was 3.6 million square feet of new office space added to the City, in comparison to 2012’s zero square feet addition to the market. Within the next five years New York City is expecting to see 17.2 million square feet added in office space.
“New York needs more office space,” said Rob Speyer. “There’s a scarcity of large blocks of space that’s going to be more pronounced in years ahead.”
Tishman Speyer was the original buyers of the Hudson Yards Site and would have been the company in charge of it’s redevelopment, if the deal didn’t fall through due to the weakened state of the economy after the crash. The Related Companies would later take over the project.
The property located on 435 10th Avenue had been marketed as the future “Hudson Spire” property. The “Hudson Spire” building, if built into fruition, would be the tallest tower in the United States. The building would tower over the Hudson Yards site with 108-stories, 1.22 million square feet, and 1,800 feet in height with the addition of the spire the building would grow to 2,000 feet. The Hudson Yards’ tallest building is only a mere 1,227 feet in comparison.
Jerry and Rob Speyer the co-CEO’s of Tishman Speyer said in a statement, “We are very bullish on New York City and Hudson Yards, and found this to be the perfect time, development site and opportunity to participate in establishing hudson Yards as the world’s next great commercial district and neighborhood.”
Financing for new developments is still difficult to procure despite the market’s growing trend for re-development. Tishman Speyer hope to acquire a major tenant to anchor construction before developing their new properties.
With the development of Hudson Yards there will be an influx of developers picking up properties around the soon-to-be “new heart of Manhattan” — Hudson Yards. With the new transportation developments of the 7-train transportation hub coming into effect this year, there are developers lining up to attain the neighboring properties to enter this the growing Hudson Yards luxury market.