Related Companies files plans for new Hudson Yards office tower

Jonathan Etra, vice president of Related Companies, submitted a new building construction project for an office (B) building at 514 West 36th Street in Hudson Yards, Manhattan. The plan was filed with the New York City Department of Buildings on October 21, 2022 under job number M08018629. It calls for the construction of a 25-story building. The project is described in the filing as: construction of a new 25-story commercial building as per plans filed herewith.
The plan calls for retail on the ground floor and offices on floors two through 24, excluding the seventh floor which is entirely mechanical.

The Real Deal reported on this filing yesterday, putting the total square feet at 1.3 million square feet, however the total zoning in this application is 565,049 square feet.

It is not unusual for an initial filing to be increased later.

The property

The 527 West 35 Street parcel has frontage of 118 feet and is 197 feet deep with a total lot size of 23,400 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9.7 million. The most recent loan totaled $45 million and was provided by Mack Real Estate Group on October 18, 2021.

Prior sales and revenue

The property is owned by Related Companies.

Development

Jonathan Etra, vice president of Related Companies submitted a new building construction project for a 565,049 square-foot business (B) building at 514 West 36 Street. The plan was filed on October 21, 2022. It calls for the construction of a 450-foot tall, 25-story building and was filed with the New York City Department of Buildings under job number M08018629. The architect is Gensler Architecture, Design & Plan. The project is described in the filing as: construction of a new 25 story commercial building as per plans filed herewith.

Violations and lawsuits

According to city public data, the property has received $1,350 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property since September of 2020.

The neighborhood

In Hudson Yards, the majority, or 83 percent of the 41.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 9 percent of the space. In sales, Hudson Yards has near average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 12th highest in Manhattan. For development, Hudson Yards has near average amount of major developments among other neighborhoods and is the 15th highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the nine commercial properties representing 511,325 square feet of the 555,773 square feet. The two identified owners are Spitzer Enterprises and Related Companies. On the tax block, there were two new building construction projects totaling 979,363 square feet. The largest is a 565,049 square-foot B building developed by Jonathan Etra with plans filed October 21, 2022 and it has not been permitted yet. The second largest is a 526-unit, 414,314 square-foot R-2 building developed by Bryan Cho with plans filed June 7, 2019 and permitted December 10, 2019.

The owner

The PincusCo database currently indicates that Related Companies owned at least 225 commercial properties in New York City with 29,124,869 square feet and a city-determined market value of $8.9 billion. (Market value is typically about 50% of actual value.) The portfolio has $4.3 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Bank of America respectively. Within the portfolio, the bulk, or 35 percent of the 29,124,869 square feet of built space are elevator properties, with office properties next occupying 31 percent of the space. The bulk, or 67 percent of the built space, is in Manhattan, with Bronx next at 17 percent of the space.

The surrounding

Within a 400-foot radius of 527 West 35 Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. One of those four items was a sale which Related Companies bought the 0-square-foot industrial (G7) on 511 West 35th Street and two other properties for $77 million from Spitzer Enterprises on October 28, 2021. Of those four items, three were loans above $5 million totaling $1.2 billion. The most recent of the three was Tishman Speyer which borrowed $300 million from NYC Industrial Development Agency secured by the 2,216,567-square-foot, one-unit office building (O4) on 527 West 34th Street on June 29, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.