A trophy office block on the edge of New York City’s Hudson Yards development has been sold, in the first $1bn-plus deal in the US city since the start of the pandemic.
Cove Property Group and The Baupost Group have sold the 697,958 sq ft, 25-storey Hudson Commons building at 441 Ninth Avenue to CommonWealth Partners for just over $1bn (£750m).
The property, which is home to ride share company Lyft and fitness group Peloton, is one of New York City’s most highly regarded redevelopments. It pairs the adaptive reuse of an existing brick factory building with a modern glass overbuild to set a new bar for “the office of the future.” It is one of only four NYC office properties to achieve LEED Platinum status.
Cover Property Group managing partner Kevin Hoo said: “This transaction is a bellweather for the resurgence of confidence in the office sector and validation for the value created by forward-looking, sustainable redevelopment at a trailblazing location.
“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.”
Darcy Stacom, chairman and head of New York City capital markets at CBRE, which advised on the sale of the building, said: “The world-class combination of an old factory warehouse with a stunning, healthy and efficient modern tower has been a beacon for tenants and a standout in the creation of a new trophy property. This transaction is a resounding affirmation of Cove’s achievement with this renovation, the excellence of the location, and the enduring value of the finest modern office properties in Manhattan.”
“Hudson Commons is a trailblazing property, in location, in design, in intention and in ESG. We are proud to become its steward as it achieves its full potential,” said Brett Munger, chief executive and managing partner of new owner CommonWealth Partners.
“This property has been developed to enable its tenants to attract and retain the very best talent in this new work environment, a base for teams to safely come together and achieve their goals. Hudson Commons is making a real contribution to the renewal of New York City,” said Munger.
Hudson Commons is 75% occupied, with approximately 670,000 sq ft of office space and 16,000 sq ft of ground-floor shops available.
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