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Tishman makes $438m play to build NYC tower

In two separate transactions, the New York-based developer has acquired multiple parcels with the intent to develop a 2.85 million-square-foot tower in the burgeoning Hudson Yards district.

Tishman Speyer has acquired a full block of undeveloped parcels in Midtown Manhattan in two separate transactions from Sherwood Equities and the Rosenthal family for a total of $438 million. The assemblage of the parcels offers the New York-based developer the opportunity to build a 2.85 million-square-foot tower at the site.
The development site consists of a block stretching from West 34th to West 35th streets and from Tenth Avenue to what eventually will be Hudson Park and Boulevard. A statement from Tishman noted that the site’s location and configuration are “ideally suited to support a mix of offices and street-level retail.” 
In a statement, Tishman co-CEOs Jerry Speyer and Rob Speyer said: “We are very bullish on New York City and Hudson Yards and found this to be the perfect time, development site and opportunity to participate in establishing Hudson Yards as the world’s next great commercial district and neighborhood.”
In the first transaction, Tishman purchased parcels situated at the southeast corner of West 34th Street and Hudson Yards Boulevard and at West 35th Street and Tenth Avenue from Sherwood for $200 million. Acquired by Sherwood for just $8.1 million in the late 1980s, the parcels currently comprise a four-story industrial building and two smaller mixed-used structures.
Tishman purchased the second property, known as Hudson Spire, from the Rosenthal family for $238 million in an all-cash transaction, according to broker Massey Knakal. The site at 435 Tenth Avenue runs from 501-507 West 34th Street to 510-528 West 35th Street.
A release from Massey Knakal noted that Tishman’s development project could become “the tallest building in the United States,” surpassing One World Trade Center in Lower Manhattan, and the third tallest building in the world after the Burj Khalifa in Dubai and the Makkah Royal Clock Tower in Mecca, Saudi Arabia.
Rezoned in 2005, the Hudson Yards district allows for 26 million square feet of office space, 20,000 units of new housing, 2 million square feet of retail space and 3 million square feet of hotels, according to Tishman Speyer.  The area currently is home of the 17 million-square-foot mixed-use project being built by Related Companies and Oxford Properties,  as well as Brookfield Office Properties’ 7 million-square-foot Manhattan West office and mixed-use development.