NEW YORK CITY-Well, it’s official.
As was expected, Time Warner, Related Cos. and Oxford Properties Group jointly announced Thursday that Time Warner intends to relocate its corporate headquarters and its New York City-based employees to Hudson Yards and has made an initial financial commitment to the development.
Meanwhile, Time Warner also revealed it has sold the 1.1 million square feet of office space it owns in Time Warner Center for $1.3 billion to a venture of Related Companies owned by the Abu Dhabi Investment Authority and GIC. The venture will lease office space back to Time Warner until early 2019.
Eastdil Secured represented Time Warner on the sale of its office space at Time Warner Center. Studley is representing Time Warner and CBRE is representing Related and Oxford with respect to Time Warner’s planned acquisition of space in Hudson Yards for its new corporate headquarters. Attorneys Stephen Lefkowitz and Harry Silvera of Fried Frank also represented the Time Warner Center in the sale of its space at Columbus Circle and in its move to Hudson Yards.
Fried Frank is representing Time Warner in the sale of its space at the Time Warner Center and its relocation to Hudson Yards.
Time Warner chairman and CEO Jeff Bewkes says, “We began a process two years ago to evaluate our commercial real estate footprint within the New York Metropolitan area, where we currently own and lease space in seven buildings. By consolidating our space to Hudson Yards, New York’s next great neighborhood, we will be able to reallocate substantial savings to our primary business.”
Related Cos. chairman Stephen Ross says, “Since opening, Time Warner Center has become one of the most successful mixed-use developments. Time Warner has been a great steward for what will inevitably be some of the most sought after commercial office space in the city.”
Adds GIC Real Estate’s regional head of Americas Tia Miyamoto, “We see significant upside in leasing the [Time Warner center] office space following Time Warner Inc.’s planned relocation to 30 Hudson Yards. We believe strong demand for this property will translate into a stable income stream.”
The Time Warner center office space features two dedicated office lobbies, ceiling heights ranging from over 13 feet to 27 feet, flexible and efficient floor plans, unique terraces and panoramic views of Central Park.
Time Warner expects to acquire more than one million square feet of the available commercial space in 30 Hudson Yards, located at the southwest corner of 10th Avenue and 33rd Street in Hudson Yards. Approximately 5,000 employees from Time Warner’s corporate operations and its HBO, Turner Broadcasting, and Warner Bros. businesses will occupy the new office space in 30 Hudson Yards at the end of 2018. The parties have signed an initial agreement for the development of 30 Hudson Yards, and all parties expect to complete final building development documents by the first half of 2014.
The 80-story 30 Hudson Yards will stand 1,227 feet tall and offer state-of-the-art commercial office space for Time Warner’s 5,000 employees, including screening rooms, studio space and dedicated corporate amenity spaces. The 2.6-million-square-foot building will feature panoramic views of the city skyline and Hudson River, what will be the city’s highest outdoor observation deck and a dramatic ground floor lobby with entrances off of Tenth Avenue and Hudson Boulevard, directly adjacent to the entrance to the new No. 7 subway extension. Upon completion, 30 Hudson Yards will be the fourth tallest building in New York City. Construction of the 10-acre platform that will serve as the foundation of 30 Hudson Yards, the remaining towers in the eastern rail yard and the public space is expected to commence in upcoming weeks.
The neighboring 10 Hudson Yards will be home to Coach Inc., L’Oreal USA, SAP and Fairway Market.