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March 26, 2008
Tishman Speyer wins Hudson Yards bid
Tishman bid $1.004 billion for rights to the plot, $112 million higher than the offer from The Durst Organization and Vornado Realty Trust.
Crain's NY Business
by Theresa Agovino
In a reversal of its own sullied tradition, the Metropolitan Transportation Authority today awarded the Hudson Rail Yards to the highest bidder, real estate developer Tishman Speyer.
Tishman Speyer edged out three other development teams to win the fierce competition to develop the Hudson Rail Yards, the 26-acre site on Manhattan’s far West side that is envisioned as an extension of midtown’s business district.
Tishman Speyer bid $1.004 billion for the rights to the plot, where it plans to build 10 million square feet of office space and 3 million square feet of housing while leaving 13 acres of open space. Its offer was $112 million higher than a competing offer from a joint venture of The Durst Organization and Vornado Realty Trust. That group had lined up Condé Naste Publications as a tenant and its proposed 6.4 million square feet of residential space was the most offered by any developer.
It is expected to cost $1.5 billion to build a platform over the train tracks so construction can begin.
NoLandGrab: How is this railyard deal different from Bruce Ratner's railyard deal? Let's see: high bidder chosen rather than low bidder; $1 billion in midst of failing real estate market vs. $100 million in midst of real estate bubble; city rezoning vs. state override; no eminent domain vs. eminent domain abuse.... Need we go on?
More coverage:
City Room (The New York Times), M.T.A. Votes to Sell West Side Land Rights to Tishman Speyer
The project still faces several prospective hurdles. The $1,004,000,000 deal requires the completion of an agreement over the next 14 days specifying terms and conditions of the deal, and the signing of a formal contract. The slowing economy has prompted some developers, like Bruce C. Ratner, to consider delay the schedule for major developments like the Atlantic Yards project in Brooklyn. And a portion of the rail yards of the Far West Side that would be controlled by Tishman still must undergo a rezoning process that could take up to 18 months.
Curbed.com, Yardsmania: It's Official!, Yardsmania: OK, So Now What?
The Real Estate, Tishman Speyer Win Not Quite Official
AP, via The International Herald Tribune, Developer Tishman Speyer to build skyscrapers, apartments on New York City waterfront
Posted by eric at March 26, 2008 2:25 PM