NEW YORK CITY-The Hudson Yards complex just got even more interesting.
McCourt Partners has purchased a 26,000-square-foot parcel of land at the southern end of the span—at 360 10th Ave., on West 30th street, next to the Spur at the High Line Park—for $167.3 million. There were no brokers on the deal.
The seller, Sherwood Equities and Boston-based Long Wharf Real Estate Partners LLC, bought the spot for $43.5 million in May, 2011. Sherwood is quite bullish on the Hudson Yards complex; it purchased other parcels in the area more than 20 years ago. But the offer on 360 W. 10th was simply too good to pass up, company executives tell GlobeSt.com.
“The price was very compelling, given what we paid,” says Jeff Katz, president and CEO. “It gave us a rate of return and a multiple that couldn't be beat.”
He continues, “The price at which we bought the property was so low due to the depressed state of economy and the early stage of development of Hudson Yards, so when it bounced back, it bounced very hard and very high.”
Adds Ryan Nelson, SVP of acquisitions and development, “We think of it as more than three times what we paid. That made it kind of hard to wait much longer [to sell]. Between when we bought and now, it's two different worlds in the area. Back then, Hudson Yards hadn't been started, no tenants were announced nor had the second phase of the High Line begun. It's all happened in a short time frame.”
McCourt plans to develop a large, mixed-use property on the site that will include retail, commercial and residential components. The company did not respond to a request for comment.
The zoning for the property is mixed-use, allowing for both commercial and residential uses. The base as-of-right floor area ratio of the property is approximately 296,000 square feet. McCourt Group will have an opportunity to purchase an additional 436,000 square feet from the city for a total development of 733,000 square feet, of which 494,000 square feet would have to be devoted to commercial development under existing zoning. The remainder could be residential. The spot straddles the juncture of both Hudson Yards and the High Line, Katz notes.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
