NEW YORK CITY — CBRE has negotiated the $1 billion sale of Hudson Commons, a 697,958-square-foot office tower located at 441 Ninth Ave. in Manhattan.
The 25-story building, which is a redevelopment of a warehouse, occupies a full city block in between 34th and 35th streets at the nexus of the Hudson Yards and Manhattan West neighborhoods. The building includes 16,000 square feet of ground-floor retail space.
The seller, a partnership between locally based developer Cove Property Group and Boston-based The Baupost Group, acquired the warehouse in 2016. The partnership added 18 stories as part of the office conversion project. Other building features include 16,000- to 50,000-square-foot floor plates and 14- to 28-foot ceiling heights.
A CBRE team comprising Darcy Stacom, Bill Shanahan, Doug Middleton and Alana Bassen represented the seller in the transaction. The buyer was Los Angeles-based CommonWealth Partners.
At the time of sale, Hudson Commons was about 75 percent leased, with fitness provider Peloton and rideshare giant Lyft serving as the anchor tenants. The property features 30,000 square feet of amenities, including a conference facility, multiple tenant lounges, a bike room and 14 separate outdoor terraces.
“This transaction is a bellwether for the resurgence of the office sector,” says Kevin Hoo, managing partner of Cove Property Group. “Given the aging nature of the majority of Manhattan’s office product, Hudson Commons is a model for the office of the future in this city — sustainably adapting an obsolete property into one that meets every modern standard, from environmental to operational to experiential.”
— Taylor Williams