Earlier this month, sales at 15 Hudson Yards hit the 25% milestone, with 75 units sold before construction is even complete. Bloomberg reports that 70% of these buyers are New Yorkers, most of whom are coming from the Upper West Side or neighborhoods downtown. This impressive feat has many wondering: with so many New Yorkers eager to call Hudson Yards home, what’s in store for the West Side’s most talked-about real estate development?
Hudson yards is the largest real estate development in NYC history since Rockefeller Center. However, developers The Related Companies and Oxford Properties Group are looking to create more than just a cluster of buildings. The previously industrial area between 10th and 12th Avenues from West 30th to West 34th street will eventually be home to approximately 4,000 residences, a cultural center called The Shed, a public school, 14 acres of public parks and open space, along with office towers and over 100 shops and restaurants. Related and Oxford Properties are creating an entire neighborhood – totaling over 18 million square feet of commercial, residential, retail, and public space.
The Hudson Yards project is comprised of two “phases,” essentially breaking the development up into “eastern” and “western” halves. Phase 1, which covers the eastern part of the development, includes two office towers (10 and 30 Hudson Yards), two mixed-use buildings (15 and 35 Hudson Yards), the performance arts space mentioned above, a 7-story mall, and a 6-acre public square. Phase 2 will complete the western part of the development and will contain up to seven residential towers, another office building, a 750-seat public school, and an extension of the High Line. The entire project is set to be complete in 2024, and Phase 1 is already well underway.
The first building of Phase 1 to be completed was 10 Hudson Yards, which broke ground at the end of 2012 and opened for occupancy in May 2016. The 52-story, LEED-Platinum Certified, 1.8 million square foot tower will house 7,000 employees once it’s fully occupied. Companies including Coach, Inc., L’Oreal USA, SAP, and The Boston Consulting group have already signed on as tenants.
The next building scheduled to open is 15 Hudson Yards, the residential building with 25% of its units already sold. The 71-floor tower was designed by Ismael Leyva Architects and the Rockwell Group, as well as Diller Scofidio & Renfro, who were responsible for the High Line. Out of the 391 apartments inside 15 Hudson Yards, 106 have been reserved for affordable housing. Apartment prices range from $2 million to $10 million, costing an average of $3,250 per square foot. This might seem pricey compared to the $2,106 average for the area, but it feels like a steal compared to nearby Midtown apartments, which can go for $6,000 per square foot. Considering amenities include a swimming pool, billiard room, and golf simulator combined with the recent extension of the 7 train providing easy access to Midtown, 15 Hudson Yards seems like a great compromise among luxury, convenience, and price.
Next on the pipeline is 35 Hudson Yards, where sales are expected to launch later this year. This mixed-use building is comprised of 71 stories with 354 units; completion is slated for 2019. There will be retail space on the ground, second, fourth, and fifth floors, office space on floors 8 through 13, a luxury hotel on floors 15 through 29, and condos averaging 3,572 square feet on floors 31 through 70. Also scheduled for completion in 2019 is 30 Hudson Yards, set to be the tallest tower in the development at 90 stories high. Construction started in July 2016, and the office building is already fully committed with tenants such as Time Warner, Inc, Wells Fargo Securities, and developers Related Companies, and Oxford Properties Group. The tower will contain an observation deck at 1,100 feet, providing unparalleled views of the city for visitors.
Rounding out Phase 1 of the Hudson Yards project is 50 Hudson Yards, where construction is to begin this year. The building is estimated to cost $3.94 billion, and at 2.8 million square feet will work out to about $1,407 per square foot, according to Curbed NY. This puts the 985-foot tower at the top of the list of NYC’s most expensive office buildings. The distinction of “most expensive office building in NYC” currently belongs to One World Trade Center, which was built for $3.8 billion. Tenants of 50 Hudson Yards will enjoy private sky lobbies and valet parking, as well as floors spanning at least 50,000 square feet. Investment management firm BlackRock has already leased out 850,000 square feet spread out over 15 floors.
With Phase 1 of the Hudson Yards project well underway, we are already seeing a highly desirable neighborhood growing on Manhattan’s far West Side over the next few years. Neighborhood blog Chelsea Now points out that the new Whitney Museum location, along with the 7 train extension and green spaces like the High Line and Hudson River park, Hudson Yards already has the makings of a “new, vibrant neighborhood.” With the shops, restaurants, cultural center, and public amenities coming in the near future, Hudson Yards is sure to become a prime Manhattan destination. Please let me know if you’re interested in learning more about the project.
