Cove files plan for 286K sf office building in Hudson Yards

Thomas Farrell, partner of Cove Property Group submitted a new building construction project for a 285,796 square-foot office and retail building at 413 Ninth Avenue in Hudson Yards, Manhattan. The plan was filed with the New York City Department of Buildings on February 21, 2023 under job number M00823149. It calls for the construction of a 34-story building. The project is described in the filing as: hereby filing to construct a new 34-story commercial building as shown on plan filed herewith. The architect is AAI Architects, P.C.

Prior sales and revenue

Cove acquired this property and 4 other properties through a ground lease from Hornig Capital Partners for $57.6 million to Cove Property Group on July 7, 2022.

Violations and lawsuits

According to city public data, the property has not received any significant violations in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Hudson Yards, The majority, or 68 percent of the 20.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 17 percent of the space. In sales, Hudson Yards has near average sales volume among other neighborhoods with $340.6 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Hudson Yards has near average amount of major developments among other neighborhoods and is the 13th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 672,408 square feet of the 699,084 square feet. The largest owner is City Of New York, followed by Cove Property Group and then Kissling Interests. On the tax block, there were three new building construction projects totaling 346,723 square feet. The largest is a 285,796 square-foot 56 building submitted by Cove Property Group and filed by Thomas Farrell with plans filed February 21, 2023 and it has not been permitted yet. The second largest is a 24-unit, 48,110 square-foot residential (R-2) building submitted by Port Authority of New York and New Jersey and filed by Andrew Lynn with plans filed September 17, 2015 and permitted November 23, 2015.

The owner

The PincusCo database currently indicates that Cove Property Group owned at least five commercial properties with 15 residential units in New York City with 526,906 square feet and a city-determined market value of $205.1 million. (Market value is typically about 50% of actual value.) The portfolio has $405.1 million in debt, borrowed from Blackstone Group. Within the portfolio, the bulk, or 98 percent of the 526,906 square feet of built space are office properties, with walkup properties next occupying 1 percent of the space. They are all located in Manhattan.

The surrounding

Within a 400-foot radius of 413 Ninth Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a sale which Kissling Interests bought the 2,962-square-foot, two-unit mixed-use building (K2) on 421 9th Avenue for $7 million from Daniel J. Lunney on February 2, 2023.

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