NEW YORK CITY — Related Cos. has announced several big milestones for the first of several towers at Hudson Yards, a 13 million-square-foot mixed-use complex planned on Manhattan's west side.
French cosmetics maker L’Oréal agreed to lease 402,000 square feet at the South Tower for its U.S. headquarters, Related said in a statement Wednesday. German software company SAP AG will take 115,000 square feet on the top four floors. The two companies will join handbag retailer Coach, which has agreed to purchase more than half the space in the first 47-story tower, set for occupancy in 2015.
With the three agreements, the South Tower is now more than 80 percent committed.
In addition, Related Cos. and its Toronto-based partner, Oxford Properties Group, have closed on nearly $1.4 billion in financing for Hudson Yards, including a construction loan led by Starwood Property Trust Inc.
Equity investors in the first phase of Hudson Yards include Coach, Related, Oxford, institutional investors advised by J.P. Morgan Asset Management and a sovereign wealth fund. With that money, full funding is in place for the South Tower.
“The show of confidence from this elite group of investors and lenders is a testament to the strength of Related and Oxford and the compelling development we are creating at Hudson Yards,” says Jeff Blau, CEO of Related Cos.
At a reported cost of $15 billion, the project has been referred to by Mayor Michael Bloomberg as one of the largest privately funded developments ever undertaken in the U.S. Construction began on the South Tower earlier this year, which will rise 895 feet at the corner of West 30th Street and 10th Avenue. The tower will include sustainable features such as onsite cogeneration power, multiple utility feeds and daylight harvesting. According to a statement by Related, the office space was designed to provide a flexible, team-based workspace.
“Relocating our corporate headquarters is an exceptional opportunity to provide our employees with a workplace for tomorrow,” says Frédéric Rozé, chief executive of L’Oréal USA.
The massive Hudson Yards development will ultimately include more than 13 million square feet of residential, office, retail, hotel and public space on a $1 billion platform to be built over rail yards.
— Liz Burlingame