Wells Fargo has agreed to buy Neiman Marcus’s vacant space at Related’s 20 Hudson Yards in New York for $550m.
In a deal that confirms the changing fortunes of one of New York City’s largest property developments, the 400,000 sq ft over three floors will be added to the 500,000 sq ft Wells Fargo already occupies at neighbouring 30 Hudson Yards.
When it committed to a 50-year lease in 2014, Neiman was supposed to be the retail centrepiece for the $25bn mixed-use development on the far west side of Manhattan.
But the high-end department store declared bankruptcy in May 2020, brought low by online shopping, a heavy debt load and the Covid-19 pandemic.
Related’s original thesis was that Hudson Yards’ offices would primarily serve to drive traffic for its retailers and luxury condominiums. Instead, those categories have underperformed while three Hudson Yards office towers – 10, 30 and 55 – are now full. Another, which counts BlackRock and Facebook as tenants, is nearly full.
