Boston Properties Joins the Moinian Group in Developing 3 Hudson Blvd.
The REIT is becoming the managing partner, purchasing a minority interest in the 2 million square-foot property in the Hudson Yards district.
NEW YORK CITY—Boston Properties signed an agreement to become the managing partner in developing 3 Hudson Blvd. with the Moinian Group. The Boston, MA-headquartered REIT is purchasing a minority interest in the 2 million square-foot office tower. The building will occupy the entire block between 11th Avenue and Hudson Boulevard Park, extending from W. 34th to W. 35th streets.
“With foundations in place, we expect it will be ready for vertical construction for an anchor tenant in the second quarter of 2019, with occupancy in the first half of 2023,” says John Powers, EVP of Boston Properties.
The 57-story building is within the 60-acre Hudson Yards district. The total cost is more than $2 billion. In addition to this partnership and Moinian equity, the Moinian Group has also actively pursued EB-5 funding.
Joseph Moinian, founder and CEO of the Moinian Group, notes Boston Properties’ strong track record in developing landmark buildings and describes 3 Hudson Boulevard as the “crown jewel” of his real estate firm’s portfolio. “Boston Properties shares our commitment to tenant-landlord relationships and industry-leading building management making them a perfect partner on this important project,” he says.
Designed by architect Dan Kaplan of FXCollaborative, 3 Hudson Boulevard will include 50,000 square-foot plates in the podium and 30,000 to 37,000 square-foot, column-free floor plates in the tower office floors. The building will also feature 10-foot-high ceilings, floor-to-ceiling windows, and private outdoor space for tenants. The development also benefits from the extension of the subway 7 line, and the 54th Street subway station that will be at the building’s entrance.
Construction began in 2017 and is expected to be completed in 2021.
Boston Properties has offices in Boston, Los Angeles, New York, San Francisco and Washington, DC. Headquartered in Columbus Circle in New York City, the Moinian Group’s portfolio includes properties in New York, Chicago, Dallas and Los Angeles. In the Big Apple, it has been focusing its growth Downtown and on the West Side.
Jones Lang LaSalle negotiated the capital transaction and will be the leasing agent led by Peter Riguardi, chairman and president of the New York region.
In a separate transaction, Boston Properties with Canada Pension Plan Investment Board formed a Joint venture and acquired Santa Monica Business Park in the Ocean Park neighborhood of Santa Monica, CA for approximately $627.5 million. This included $11.5 million of seller funded leasing costs after the effective date of the sale.
The property is a 47-acre office park, with 21 office buildings offering approximately 1.2 million net rentable square feet. Approximately 70% of the rentable square footage is subject to a ground lease with 80 years remaining. The ground lease provides the joint venture the right to purchase the land in 2028 with subsequent purchase rights every 15 years. The property is 94% leased.