The FINANCIAL -- Allianz Real Estate on August 1 announced that it has acquired a 44 percent stake in 10 Hudson Yards, the first tower completed in Related Companies and Oxford Properties Group’s mixed-use Hudson Yards development on Manhattan’s west side.
A limited partnership that includes Allianz, Related Companies, Oxford Properties Group and institutional investors advised by J.P. Morgan Asset Management, now owns the property.
“Our significant investment of approximately €375 million ($420 million) exemplifies Allianz Real Estate’s strategy to increase its exposure to the 24/7 global cities,” said Francois Trausch, chief executive officer of Allianz Real Estate worldwide.
“This opportunity reflects the goal of our U.S. team to pursue high-quality, long-term investments with best-in-class partners,” said Christoph Donner, chief executive officer, Allianz Real Estate of America. “But the attractiveness of this investment goes beyond the financial dimension – being part of an exciting new neighborhood is a source of great pride.”
Hudson Yards is transforming Manhattan’s west side and creating an entirely new, vibrant neighborhood. It is the largest development in New York City since Rockefeller Center was built in the 1930s and is the largest private real estate development in U.S. history. The site is a planned mixed-use neighborhood featuring more than 1,6 million square meters (ca. 17 million square feet) of commercial and residential space, more than 100 shops, a collection of restaurants, approximately 4,000 residences, a unique cultural space, 57.000 square meters (14 acres) of public open space and a 750-seat public school. It is anticipated that more than 24 million people will visit the area every year, according to Allianz Real Estate.
Jeff T. Blau, chief executive officer of Related Companies, said, “We are thrilled to partner with Allianz on 10 Hudson Yards. The tower has been an unqualified success attracting a diverse set of marquee tenants and has been widely recognized as one of the best office locations in New York City. Allianz is one of the world’s most respected real estate investors and its commitment further evidences the value we have created through our focus on best-in-class architecture and planning and meticulous execution.”
10 Hudson Yards is 94 percent leased with a weighted average lease term of nearly 17 years. The property includes an impressive tenant roster including Coach, Inc., L’Oreal USA, SAP and Boston Consulting Group. In total, 74 percent of the leases are to investment-grade tenants.