(Read more on the multifamily market.)
NEW YORK CITY-Officials put out the call for a development plan for the Hudson railyards on the West Side, seeking new ideas from developers for the once proposed Jets stadium as GlobeSt.com reported Friday. The MTA is seeking proposals that include a combination of commercial, residential and open space for the 26-acre site. This advancement not only creates an opportunity for the winning developer or developers of the site, but allows companies who already own parcels of land in the surrounding area a chance to get in on the action.
One such company, Sherwood Equities Inc., has, over the years, been assembling two key development sites on the West Side near the railyards site. The first parcel is located at 34th Street and 10th Avenue on a 65,000-sf footprint, where plans exist to build either a 2.5-million-sf office building or a 2,500-room hotel or condo/hotel is in the works. The second site, located on 10th Avenue between 35th and 36th streets is planned as a 35-story, 200-unit residential building. Plans have been produced for the developments, however the commencement of the projects have been dependable on favorable market conditions, including the development of the Hudson Yards site.
Jeff Katz, president & CEO of locally based Sherwood, tells GlobeSt.com that he has been expecting Friday's announcement for some time. "I think that what is being done is exactly what needs to be done," he says. "The land sat there for years and years, and I am optimistic about getting the ball rolling."
Katz says that Sherwood is waiting to see what will happen with Hudson Yards before determining whether they should go towards the office or hotel property type on the 34th Street site. "At this point it can go either way, but we are in the early stages at the moment."
Katz notes that he expects to see bids for development rights of Hudson Yards from the usual cast of characters including Tishman Speyer Properties, Related Cos., Brookfield Properties, the Durst Organization, Vornado Realty Trust and others although he pointed out two hesitations developers may have regarding the site. "The first is that getting a subway line in place is essential, not so much for residential property, but for office buildings in the area, which should be completed by 2013," he says. "The second hesitation is that no one wants to be one to make the first move."
For Sherwood, Katz notes that the company has owned the sites in the area for a very long time. "We have been waiting for the area to develop since we bought the property in 1986, what's another year of two?" Katz says.
"It is the beginning of a new district of New York," Katz explains, adding that the most important thing at this point is figuring out how everything is going to get started in the area. "We should see things moving forward and start to happen by the end of this year...hopefully."
Sherwood has developed or currently owns 2 Times Square, 1600 Broadway, 1 Times Square, the Coronado (Broadway & 70th Street), the Saratoga (First & 75th) as well as other properties in the area. Several major developments are in the planning stages.
Katz notes, "Hudson is finally becoming a reality."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
