Mori Trust’s $540 Million, Mixed-Use Purchase at 35 Hudson Yards Marks Another Big Global Bet on Manhattan
Global capital continued to flow into Manhattan this week as Japan’s Mori Trust purchased the lower 38 floors of 35 Hudson Yards for $540 million, adding another major asset to its growing New York portfolio.
The deal covers 490,128 square feet of mixed-use space — including hotel, retail, fitness and office — in the 92-story, roughly 1,000-foot tower that’s one of the 20 tallest buildings in New York City and a signature piece of the Hudson Yards redevelopment. Related Companies and Oxford Properties were the sellers.
For Mori Trust, the acquisition includes the 212-room Equinox Hotel on floors 24 through 38; Equinox’s flagship fitness and wellness center; street-level retail; and approximately 180,000 square feet of office space. The office portion is 100% occupied, while retail is 73% leased. The tower’s upper-floor luxury residential condominiums were not included in the transaction.
The building opened in 2019 with the Equinox Hotel debuting that June. According to Bloomberg reporting at the time, Related first explored a sale of the hotel as early as 2022.
Mori Trust has focused on pairing high-end hospitality with stabilized commercial real estate in global gateway markets.
“Acquiring high-quality properties overseas, such as 35 Hudson Yards, contributes to the stability and sustainability of our asset portfolio and will drive further growth in the future,” said Mori Trust President and CEO, Miwako Date.
The firm expanded its New York footprint last year by purchasing a 49% stake in 245 Park Ave. in Midtown East.
The current deal continues a year of substantial overseas investment in Manhattan: Norges Bank Investment Management acquired a 95% stake in 1177 Avenue of the Americas, while Ingka Investments — the investment arm of IKEA — purchased the mixed-use property at 529 Broadway in SoHo.
Additionally, Gulf-region capital has also accelerated: Saudi Arabia’s Public Investment Fund, in partnership with Related, has taken a controlling stake in a Midtown site slated for a new office tower that could exceed $1 billion in total project costs. The underlying land traded for more than $600 million in 2024 with early planning discussions floating heights of roughly 1,200 feet.
Newmark’s Adam Spies, Doug Harmon, Marcella Fasulo, Adam Doneger, Josh King and Avery Silverstein represented both sides of the deal. Jeff Davis of Eastdil Secured advised Related specifically on the hotel component.