Walt Disney Co. Strikes $650M Deal to Develop New Downtown Manhattan Headquarters
NEW YORK — The Walt Disney Co. (NYSE: DIS) has acquired development rights in downtown Manhattan’s Hudson Square neighborhood for $650 million. The 4 Hudson Square site covers a full city block bordered by Hudson, Varick, Vandam and Spring streets.
The global media firm plans to move its New York operations to the new site, including 1.2 million square feet of office and production space for WABC-TV, ABC News, Live with Kelly and Ryan and The View. According to ABC-7, Good Morning America will continue to broadcast from Times Square and Disney Streaming Services will relocate from Chelsea Market to the Hudson Square site.
“We’re announcing plans to build an incredible new state-of-the-art facility at 4 Hudson Square in downtown Manhattan that will ensure our employees have everything they need to do their best work and lead the way forward,” said Robert Iger, chairman and CEO of Disney. “This move represents a historic step forward toward our long-term vision for our New York operations. The Hudson Square district is rapidly becoming a dynamic, innovative hub for media, technology and other creative businesses. We are pleased and proud to be joining this exciting community.”
According to Iger, the new facility will be LEED-certified and outfitted with the latest technology for its employees. The 4 Hudson Square site is the center of Manhattan’s Hudson Square neighborhood, an 18-block area bounded by Greenwich Street, West Houston Street, Varick Street, Sixth Avenue and Canal Street.
Disney’s new New York home is part of Trinity Church Wall Street’s real estate portfolio, which the church says dates back to a 215-acre land grant given by England’s Queen Anne to the church in 1705.
Walt Disney Co. purchased development rights from the church at 4 Hudson Square for 99 years as part of a ground lease. The site spans 86,025 square feet zoned for mixed-use.
“We are excited to welcome Disney to the vibrant and growing Hudson Square area,” said the Rev. William Lupfer, rector of Trinity Church Wall Street. “We’re especially pleased that the transaction will help further Trinity’s mission to serve the people of New York City and around the world through our programs and ministries.”
Eastdil Secured represented Disney in the transaction, and CBRE represented Trinity Church Wall Street.
The new acquisition comes a few months after it was reported that Disney would sell its ABC campus in Manhattan to Silverstein Properties for $1.2 billion. The Wall Street Journal reports the Disney-Silverstein deal is expected to close today.
Disney will lease back the campus for five years while 4 Hudson Square is under development.
Walt Disney Co.’s stock price closed on Monday, July 9 at $106.25 per share, up from $103.59 a year ago.
— John Nelson