Cove Property seeks to build 178K sf mixed-use tower in Hudson Yards

Cove Property Group is seeking 25,000-square-feet of Hudson Yards District Improvement Bonus floor area to construct a 178,122-square-foot mixed-use building at 413-419 Ninth Avenue in the Hudson Yards neighborhood of Manhattan.

The developer is also seeking certification for office use. The filing indicates the building would be 31 stories and consist of retail and office space.

According to the city’s Department of City Planning, the Hudson Yards District Improvement Bonus (DIB) provides additional floor area of up to 8 FAR for sites within certain subareas of the Special Hudson Yards and Special Garment Center Districts. To obtain the bonus an applicant would make a per square foot of bonus contribution to the Hudson Yards District Improvement Fund (DIF). The price of the bonus is adjusted every August as per the U.S. Department of Labor’s Consumer Price Index and currently stands at $125.36 per square foot.

The application was filed through Hornig Capital Partners’s Ninth Avenue Ground LLC. Back in November of 2020, Cove Property Group through the entity Hudson Ninth Avenue Owner LLC as the tenant signed a 99-year lease with Hornig Capital Partners’s Ninth Avenue Ground LLC valued at $45.9 million for 413 Ninth Avenue, 415 Ninth Avenue, 419 Ninth Avenue, and air rights above 408 West 34th Street in Hudson Yards.

PincusCo, which reported the transaction, indicated the lease was part of a three-level structure with three separate leases. The first lease was signed by Anthony and Suzanne Kissling as the fee owners who control three properties, and have a stake in air rights from a neighboring co-op at 408 West 34th Street. The Kisslings with Suzanne Kissling as signatory signed a 150-year lease with their tenant, an entity called RGS Ninth Avenue Realty LLC, whose signatory was Randy Modell of ABS Real Estate Partners. That transaction was valued at $20 million. That entity as tenant and also sublandlord, signed a 150-year lease with Daren Hornig’s Hornig Capital Partners as subtenant. That transaction was valued at $22 million. Hornig, in turn as subtenant and sub-sublandlord, signed a 99-year lease with Cove Property Group, as sub-subtenant. That last lease was valued at $45.9 million.