New York’s Metropolitan Transportation Authority (MTA) has formally approved the $1 billion (€634 million) deal that will see Goldman Sachs real estate arm, Goldman Sachs Real Estate Principal Investments, and New York developer, Related Companies, redevelop the 26-acre Hudson Yards site.
The joint venture was unveiled earlier this week after a previous agreement with real estate investment firm Tishman Speyer failed. The scheme had to be formally backed by the MTA board, which agreed to the proposals yesterday.
Hudson Yards is considered the largest undeveloped plot of land in Manhattan. It sits on top of an active rail yard on New York City’s west side bounded by West 42nd and 43rd Streets, 7th and 8th Avenues, West 28th and 30th Streets, and Hudson River Park.
Goldman Sachs and Related agreed to pay the MTA, which owns the rail site, $1 billion for a 99-year lease for the air rights to the land. There are plans to construct 13 buildings on the site, including offices, apartments, hotels, shops, parking space and public spaces. The building space would total 12 million square feet – one million more than for the planned World Trade Center replacement.
Tishman Speyer reportedly pulled out of the project after seeking to the redevelopment plans over zoning issues on the eastern part of the site, the area known as Hudson Yards.