NEW YORK CITY—Mitsui Fudosan said Friday it would take a 90% stake in 50 Hudson Yards, a 58-story office tower that's being developed by Related Cos. and Oxford Properties Group as part of the massive Hudson Yards mixed-use project on Manhattan's Far West Side. Total project value of the 985-foot office property is more than ¥400 billion, or US$3.6 billion.
The deal marks Tokyo-based Mitsui Fudosan's second investment in Hudson Yards. In 2014, it acquired a majority interest in 55 Hudson Yards, paying $259 million for a 90% stake in the 51-story office property, which is scheduled to open in 2018.
Mitsui Fudosan is looking to overseas business as one of its growth areas. The company is an active investor and developer in the U.S. and UK and elsewhere in Europe, as well as in China, Taiwan and Southeast Asia.
In common with 55 Hudson Yards, Mitsui Fudosan regards 50 Hudson Yards as a flagship building that will be at the core of its portfolio for future overseas business. The company says that in addition to offering an opportunity to expand its overseas operations, the project will utilize the expertise it has accumulated though its mixed-use urban development and neighborhood creation projects in Japan to add further value to the Hudson Yards project.
At nearly 2.8 million square feet, 50 Hudson Yards is among the largest standalone office developments in Manhattan. In May, BlackRock signed on for 847,000 square feet at the Norman Foster-designed tower, which is slated for completion in 2022.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
