Related Companies and Oxford Properties Group have made another splash involving their planned 72-story skyscraper, 70 Hudson Yards. The joint venture announced it has landed a $2.45 billion full capitalization for the property, which includes a $1.6 billion construction loan from Wells Fargo, Bank of America and Standard Chartered, as well as equity from institutional investors.
The move comes after Deloitte inked an 800,000 square foot lease at the planned 1.4 million-square-foot tower last April. This will serve as the professional services network's new U.S. headquarters, relocating from Rockefeller Center. Also, the deal marks the largest tenant relocation deal in New York City since 2020.
The development located on Hudson Boulevard and 35th Street will feature both indoor and outdoor workspace, private terraces and an exclusive amenity club. Leasing for the upper levels of the building (550,000 square feet) is expected to start this year.
“New York City is extraordinary in its ability to attract the world’s top talent and, as a result, we are experiencing equally extraordinary demand for Class-A office,” Jeff T. Blau, CEO of Related Companies, said in a statement.
“When industry leaders like Deloitte want to relocate, we are thrilled they look to the dynamic environment and neighborhood we have built here at Hudson Yards. We could not think of a better anchor tenant for 70 Hudson Yards than Deloitte, and we look forward to delivering an exceptional headquarters for their team to grow, thrive and serve their global clients.”
Last year was a strong one for Manhattan's office sector. Avison Young reported 39.8 million square feet in leasing activity, the highest total since 2019 and up 4.28 percent from 2024. Also, availability tanked by 18 percent year-over-year to 15 percent in the fourth quarter, the lowest level since 2020.
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