Mit­sui Fu­dosan to Take a 90% Stake in 50 Hud­son Yards

The Jewish Voice - - NEW YORK - By: Hadassa Kala­ti­zadeh

The most ex­pen­sive of­fice de­vel­op­ment in the NYC’s his­tory has found a ready will­ing and able in­vestor. On Fri­day Septem­ber 1st, Ja­panese de­vel­oper Mit­sui Fu­dosan said it would be tak­ing on a 90 per­cent stake in 50 Hud­son Yards. The in­vest­ment will cost Mit­sui Fu­dosan, a sub­sidiary of Tokyo-based Mit­sui Group, over 400 bil­lion yen or $3.6 bil­lion, mak­ing it the com­pany’s largest in­vest­ment in any sin­gle over­seas build­ing.

The 58-story tower, will cost $4 bil­lion, and is slated for com­ple­tion in 2022. The Hud­son Yards of­fice and re­tail com­plex will be one of the largest stand­alone of­fice prop­er­ties in the rapidly-grow­ing area. De­vel­oped by Re­lated and Ox­ford Prop­er­ties Group, the tower will boast 2.79 mil­lion square feet of re­tail and of­fice space. If all goes ac­cord­ing to plans, the 985-foot tower will cost $1,400 per square foot to de­velop, as per The Real Deal.

The up­com­ing tower at 50 Hud­son Yards has al­ready landed its an­chor ten­ant. As­set Manager, Black­Rock dis­closed in May that it will oc­cupy 847,000 square feet in the tower start­ing 2023. It will pay $1.25 bil­lion for a 20-year lease, or $60 a square foot over the first five years and $74 a square foot there­after. In ad­di­tion, the ten­ant will need to pay $30 per square foot in an­nual op­er­at­ing ex­penses and prop­erty taxes.

The Ja­panese Real Es­tate mogul said it is mak­ing the over­seas in­vest­ment to di­ver­sify, an­tic­i­pat­ing that of­fice rents will fall in Tokyo. The city is build­ing more of­fice space just to ac­com­mo­date the 2020 Olympic games, but the gov­ern­ment ex­pects Tokyo’s pop­u­la­tion to start dwin­dling af­ter 2025, as re­ported by Reuters.

Mit­sui Fu­dosan is no new­comer to the Big Ap­ple. In the 1980s it ac­quired its head­quar­ter build­ing, the 2.3 mil­lion square-foot Exxon Build­ing at 1251 Av­enue of the Amer­i­cas. Late in 2014, the com­pany agreed to pay $259 mil­lion for a ma­jor­ity stake in 55 Hud­son Yards, the 1.3 mil­lion-square­foot of­fice build­ing. It also owns 527 Madi­son Av­enue, a bou­tique of­fice build­ing with 240,000 square feet. Fur­ther, it de­vel­oped a 41-story ren­tal build­ing at 160 Madi­son Av­enue.

The Ja­panese Real Es­tate mogul said it is mak­ing the over­seas in­vest­ment to di­ver­sify, an­tic­i­pat­ing that of­fice rents will fall in Tokyo.

Ja­panese de­vel­oper Mit­sui Fu­dosan said it would be tak­ing on a 90 per­cent stake in 50 Hud­son Yards. The in­vest­ment will cost Mit­sui Fu­dosan, a sub­sidiary of Tokyo-based Mit­sui Group, over 400 bil­lion yen or $3.6 bil­lion, mak­ing it the com­pany’s largest in­vest­ment in any sin­gle over­seas build­ing.

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