Related Companies and partner Oxford Properties found a buyer for a portion of 35 Hudson Yards four months after kicking off an exploration of a sale.
Japan’s Mori Trust purchased 38 stories of the property for $540 million, Bloomberg reported. The acquisition encompasses office, retail, fitness and hotel space at the property, leaving the for-sale residences out of Mori Trust’s hands.
The components Related and Oxford made available in June included 180,000 square feet of fully leased office space, an Equinox gym — the fitness company is a subsidiary of Related — and a retail component that was 73 percent leased, including to SoulCycle, a subsidiary of Equinox. There’s also the 15-floor Equinox Hotel, which has 212 rooms.
The offering was projected in June to achieve as much as $600 million, a source previously told the outlet.
A Newmark team led by Adam Spies, Doug Harmon and Marcella Fasulo are representing the sellers. Eastdil Secured’s Jeff Davis advised Related on the hotel portion of the deal, a source told The Real Deal.
Related and Oxford raised $2 billion to build 35 Hudson Yards, a 1,000-foot tower that’s one of the tallest properties in the United States. The office, retail and fitness sections of the building qualify for a tax abatement in place through 2039.
Sales for the separate residential portion launched in 2019, led by Related and Corcoran Sunshine. Resident amenities include a yoga studio, golf simulator and lounge with a terrace.
This isn’t Mori Trust’s first big splash in Manhattan.
Two years ago, the developer bought 50 percent of the equity in the 1.7 million-square-foot 245 Park Avenue tower north of Grand Central Terminal. The deal valued the property at $2 billion and represented the first major breakthrough for Manhattan’s office market after the pandemic upended the sector.
“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,” Mori Trust chief executive officer Miwako Date said in a statement.
The Tokyo-based firm was founded in 1970 by Akira Mori and is run by his daughter, Date. Mori entered the U.S. market in 2017 by purchasing a pair of Boston office buildings for $673 million.
The company bought a San Jose office campus for $429 million in 2019 and sold it to KKR two years later for $535 million. Mori also paid about $500 million to buy an office building in Washington, D.C., in 2022, at which point it said it was ahead of schedule on its U.S. investment plan.
— Holden Walter-Warner
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