Tishman Speyer extends Hudson Square ground lease by 40 years

Tishman Speyer, through the entity 175 Varick, L.L.C., as tenant, extended its ground lease with Jonathan Lehman’s The Georgian Press, Inc., as landlord, at the office building (O6) at 175 Varick Street in Hudson Square, Manhattan. The extension had a value in city property records of $57 million, but only state taxes were paid.
The expiration date of the ground lease was extended from December 31, 2107 (see p. 4) to December 31, 2147.
The deal closed on January 22, 2024 and was recorded on February 15, 2024. The property has 137,975 square feet of built space according to a PincusCo analysis of city data.

The property

The parcel has frontage of 75 feet and is 149 feet deep with a total lot size of 13,219 square feet. The lot is irregular. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $47.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $2,740 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 19, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Hudson Square, The majority, or 76 percent of the 11.9 million square feet of commercial built space are office buildings, with industrial buildings next occupying 8 percent of the space. In sales, Hudson Square has the 41st highest sale turnover among other neighborhoods in Manhattan with $49.7 million in sales volume in the last two years. For development, Hudson Square has had very little major development activity relative to other neighborhoods.It had -5,749,352 square feet of commercial and multi-family construction under development in the last two years, which represents -48.49 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the eight commercial properties representing 529,826 square feet of the 1,047,124 square feet. The largest owner is Aew Capital Management, followed by Claremont Companies and then Extell Development.
On the tax block, there was one new building construction project filed totaling 183,395 square feet. It is a 165-unit, 183,395 square-foot residential (R-2) building submitted by Toll Brothers and filed by Joseph Clark with plans filed March 28, 2017 and permitted March 21, 2018.

The majority, or 53 percent of the 1 million square feet of built space are office buildings, with elevator buildings next occupying 21 percent of the space.

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