New York City: Hudson Yards
Like so many cities New York is always adding new and dynamic mixed use property developments and one of those is Hudson Yards, from 30th to 33rd Streets, between 10th and 12th Avenues in an area of Manhattan’s West Side that had been mostly unused parcel of the area. At 28 acres and a $20 billion to construct this development is considered to be the largest ever in the U.S. surpassing such locations as the Rockefeller Centre at 22 acres and the World Trade Centre at 16 acres. It will be placed atop with two large concrete platforms at Penn Station. Also being constructed nearby is the rival development, Manhattan West.
According to Stephen Ross, founder and chairman of the Related Cos., developer of Hudson Yards, Hudson Yards has been attracting companies to relocate, in part, because their existing offices in Manhattan have become obsolete. “You need less square-foot space per employee. Probably when most of these buildings were built, they were looking at over 300 square feet per person. Today, we are down below 200 feet per person. Corporations see they don’t need as much space as they needed in the past. When completed in 2025, 125,000 people a day will work in, visit, or call the $25 billion, 28 acre development their home.’
The finished development will include: 18 million sq ft of commercial and residential space, one million sq ft of retail and mixed use space, 100 shops and restaurants, 4,000 residences with 14 acres of public space and three parks.
Already built on the site is 10 Hudson Yards which opened in May 2016. With a height of 895 feet and 1.8 million sq ft of commercial space the building is now fully occupied featuring brand names as Coach Inc., L’Oréal USA and Vayner Media. The residential tower was designed by Diller Scofidio + Renfro.
The first residential tower to open at Hudson Yards, 15 Hudson Yards, will be the stage for art, fashion, commerce and design. The 88-story building featuring four arcs of glass, designed by Diller Scofidio + Renfro with the Rockwell Group, will be among the tallest in New York City.
Now under construction, 15 Hudson Yards started unit sales in the fall of 2016 with prices starting at $2 million. The homes are described as ‘...one-bedroom layouts overlooking the High Line to duplex penthouses with panoramic city views, 26-foot ceilings and more than 5,000 square feet of living space. All homes offer handsome wide-plank oak flooring, hand-selected materials and kitchen appliances by Miele; residents can select from two interior design palettes. With lavish master suites, expansive floor plans and the best features, the building ensures optimal city living.’ All residences are to be completed by 2018.
Residents will also have 24-hour concierge service, two floors of wellness, skytop entertaining suite with indoor entertainment lounges. Also planned is The Shed a 200,000 sq ft artistic and cultural centre that will host New York Fashion Week in 2019.
The next skyscraper under construction is 30 Hudson Yards, a 90-storey, 2.6 million square feet that will become the second tallest building in the city. Upon completion the building will tower at 1,296 feet high and is to be completed in 2019 and will have the highest outdoor observation deck in the city. The building is said to feature: ...’triple-height lobby, direct access to premier restaurants and retailers and a direct underground connection to the new No. 7 Subway station. The building is fully committed.’
50 Hudson Yards at the northwest corner of 33rd Street and 10th Avenue, is expected to be completed in 2022. The tower said to be designed to offer a ‘working environment flooded with natural light and will reinvent the workplace in a way that inspires collaboration and interaction.’ The 2.9-million-gross-square-foot building will stand 985 feet tall, with access to the No. 7 Subway. The towers interiors ‘... will offer column-free floors throughout the building, larger floorplates at the base, private sky lobbies, staggering views of the Hudson River and executive valet parking in a private porte-cochère. The white stone and glass-clad façade are designed to accentuate the verticality of the building, while the interior is designed to house large trading and amenity spaces.’
And finally, the 55 Hudson Yards office building will become the newest addition to the Hudson Yards development, Located at the southeast corner of 11th Avenue and 34th Street, 55 Hudson Yards will have 1.3 million square-feet with 51 floors. Construction is scheduled to be complete by 2018. Already planned for relocation to the property are firms including law firms Milbank Tweed Hadley & McCloy LLP and Boies, Schiller & Flexner.
Manhattan West and The Eugene
The Eugene, at 435 West 31st Street, opened in early March and is the first building of the Manhattan West which is expected to have seven million sq ft mixed use space.What had been an used tract of property will become the first large apartment building in the area.
The building takes it name from John Eugene Zuccotti, a former Brookfield chairman and deputy mayor of New York.
At 731-foot tower appears, made entirely of glass and will feature 844 units with 675 described as ‘market-rate’ apartments with 169 being rent regulated aimed at reaching tenants at particular income levels. Also included: ‘Eighty-five percent are studios and one-bedrooms, with two- and three-bedrooms making up the balance. All of the apartments have engineered-wood floors, black-granite kitchen counters and stacked Bosch washers and dryers, plus floor-to-ceiling windows with sweeping views in a building with four exposures.’
Amenities available are 55,000 square feet Including full-size basketball court, a two-story climbing wall, a game room with vintage pinball machines, and a landscaped four-grill terrace on the roof. Leases at the Eugene are to start ‘...at $3,210 a month for studios, $4,480 a month for one-bedrooms and $6,780 a month for two-bedrooms, although the three-bedrooms reportedly have not yet been priced. Developer Brookfield will offer a one-year lease comes with an extra free month of rent, and Brookfield will pick up broker fees. StreetEasy.com reports rents are typically around $2515 for a studio in this location with a one-bedroom going for $3,170.
Also at One Manhattan West, a new office tower is under construction at Ninth Avenue and West 33rd Street, and should be completed in 2019 with tenants such as the National Hockey League. Other commercial properties include Two Manhattan West which will be finished in 2022 and an existing property to be named the Lofts is being re-developed with shops.
At Five Manhattan West, a former industrial building built in 1969, a new 60,000 sq ft upscale market, Whole Foods, will be a part of Magnolia Court a tree-lined pedestrian by the Lincoln Tunnel.
As Hudson Yards and Manhattan West go full steam ahead what about the rest of the condo market for New York. According to Corcoran Sunshine Marketing Group there are nearly 4,282 freshly built units on sale in Manhattan which is double the number of units in 2016. Bloomberg recently quoted Harry Macklowe of Macklowe Properties stating: ‘The bright side to so much supply is that it gives developers a road map for future projects. Overproduction is OK because it can create order out of chaos,” and “There is now certainty in the market. We know where the price floors are. We know that the demand for $10,000-or $12,000-a-foot units is very slow, that the appetite for that is limited and therefore, the production of that housing should be limited. We also know that there’s a great need for housing in the $2,500-to $3,000-a-foot range.”
Macklowe is the condo developer of of the former New York Mellon Bank located on 1 Wall Street and Broadway. Bank of New York Mellon Corp.,sold its 1.1 million sq ft headquarters tower at 1 Wall St. in lower Manhattan for $585 million.