$3.8B Office Tower Opens on Manhattan’s West Side

Related Cos., Mitsui Fudosan America and Oxford Properties Group marked the completion of 50 Hudson Yards.

50 Hudson Yards, New York City

50 Hudson Yards. Image courtesy of Hudson Yards

Saying it is a symbol of New York City’s office resurgence, the developers of 50 Hudson Yards, the nearly 3 million, 58-story tower in Hudson Yards on the Far West Side, officially opened the building yesterday with a ribbon-cutting and sake barrel ceremony to celebrate its completion.

At $3.8 billion, or approximately $1,407 per square foot, it’s the most expensive office project in New York City.

Developers Related Cos., Mitsui Fudosan America and Oxford Properties Group said the tower—the fourth-largest office building in New York City—is 84 percent preleased. Technology and financial companies that will soon begin moving into 50 Hudson Yard include BlackRock, Meta, Vista Equity Partners, Truist Financial, ServiceNow, Passkey and XTX Markets.

BlackRock, whose new global headquarters will occupy 970,000 square feet, announced in December 2016 it would be moving from its longtime office at 55 E. 52nd Street and other space in the Plaza District to 50 Hudson Yards. Rob Goldstein, COO of BlackRock, said yesterday it will be the first time since the global investment company’s earliest days that all its New York City employees would be under one roof.

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Meta, parent company of Facebook and Instagram, recently announced it was giving up 200,000 square feet of space at 225 Park Ave. South in part because of planned moves to Hudson Yards and the new Farley Building. Meta is leasing 1.2 million square feet at 50 Hudson Yards, 80 percent of the space it is taking at the Hudson Yards complex that has a total of 8.6 million square feet of office space.

Truist is among the latest companies to lease space at 50 Hudson Yards, confirming reports last month that it would be taking 100,000 square feet at the tower. Vista Equity Partners is also a newly announced tenant and is leasing 95,000 square feet.

Sake Barrel Ceremony at 50 Hudson Yards Grand Opening

Sake Barrel Ceremony at 50 Hudson Yards Grand Opening. Left to right: Bruce Beal, Masanobu Komoda, John Westerfield, Mayor Eric Adams, Stephen Ross, Jeff Blau. Image courtesy of Hudson Yards

Jeff Blau, CEO of Related Cos., said in a prepared statement the growing tenant bases of industry leaders reinforces that office is back in New York City. He stressed that great ideas are born from collaboration and noted every detail of the building designed by Foster + Partners has been carefully chosen to enrich the benefits of face-to-face interaction.

The 1,011-foot-tall LEED Gold-anticipated building, occupying an entire block at the northwest corner of 33rd Street and 10th Avenue, forms part of the $20 billion, 18 million-square-foot Hudson Yards megaproject with office, residential, retail and cultural uses.

Speaking at yesterday’s ceremony, Mayor Eric Adams said the opening of 50 Hudson Yards marks another major milestone in New York City’s continued economic recovery from the pandemic. He said in prepared remarks the leaders of companies leasing space are sending a clear message they have confidence in the future of the city.

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50 Hudson Yards Grand Opening Ribbon Cutting

50 Hudson Yards Grand Opening Ribbon Cutting. Left to right: Ana Bertuna, Emad Lotfalla, Dean Shapiro, Lord Norman Foster, Rob Goldstein, John Westerfield, Masanobu Komoda, Ambassador Mikio Mori, Mayor Eric Adams, Kathy Wylde, Stephen Ross, Jeff Blau, Bruce Beal, Ken Wong, Takashi Yamamoto, Andrew Cantor, Councilman Erik Bottcher. Image courtesy of Hudson Yards

Gary LaBarbera, president of Building and Construction Trades Council of Greater New York, said the opening also represents a milestone for commercial office construction in New York City and thanked all those who worked on the project. Construction began in 2018 and the building opened on schedule despite the unprecedented impact of the global pandemic. The project topped out in February 2021.

Mitsui Fudosan America took a 90 percent stake in the building in 2017. The amount was not disclosed. Also in late 2017, Related closed on a $1.5 billion construction loan for the tower from a consortium of banks including Wells Fargo, Bank of China, Deutsche Bank, HSBC and Sumitomo Mitsui Banking Corp.

Earlier this month, news broke that Wells Fargo had provided a $348.8 million “rehab” construction loan to the developers. Citing a Related spokesperson, The Real Deal reported the transaction had closed in September and stemmed from the original 2017 financing deal. Meanwhile, CommercialEdge reports Wells Fargo originated a $440 million loan in December 2019 that matures in December 2024.

Building highlights

John Westerfield, CEO of Mitsui Fudosan America, said in prepared remarks 50 Hudson Yards provides the next generation of office space. He pointed to the column-free floors, state-of-the-art building systems, floor-to-ceiling windows and spectacular views that are attracting world-class tenants.

The building has multiple dedicated lobbies and large amenity-laden sky lobbies and outdoor terraces. Foster + Partners collaborated with Tony Ingrao on the interiors. The two-level lobby linked by a spiral staircase leads to a private bar and lounge on the mezzanine for casual meetings and entertaining and also provides views of Hudson Yards’ Public Square and Gardens.

50 Hudson Yards, NY

50 Hudson Yards. Image courtesy of Hudson Yards

A communal amenity on the 32nd floor offers gathering spaces, private dining spaces, meeting and event areas and a café with grab-and-go options. Tenants can reserve the spaces for private events. Each customizable workplace floor can accommodate up to 500 or more employees and is designed to encourage creativity. A concierge service for tenants is located on the top floor.

Foster + Partners is also handling design of the newly announced location of Russ & Daughters, a well-known, 109-year-old Lower East Side deli that has leased 4,500 square feet of space. Set to open in the spring, the restaurant will have a seated counter, dining area and private event space. Features will include a bagel bakery and caviar and champagne bar. Additional dining options will be announced in the coming months.

The building has 94 high-speed elevators, direct access to the No. 7 subway station and entrances on Hudson Park & Boulevard and 10th Avenue as well as both 33rd and 34th streets. It is also located within minutes of the Air Pegasus Heliport, Midtown Ferry Terminal, Lincoln Tunnel and Moynihan Station.

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