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Testimonials

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Sandro Rosell
FC Barcelona President
Saturday, September 23, 2017

The most expensive office development in the NYC’s history has found a ready willing and able investor. On Friday September 1st, Japanese developer Mitsui Fudosan said it would be taking on a 90 percent stake in 50 Hudson Yards. The investment will cost Mitsui Fudosan, a subsidiary of Tokyo-based Mitsui Group, over 400 billion yen or $3.6 billion, making it the company’s largest investment in any single overseas building. 

The 58-story tower, will cost $4 billion, and is slated for completion in 2022. The Hudson Yards office and retail complex will be one of the largest standalone office properties in the rapidly-growing area. Developed by Related and Oxford Properties Group, the tower will boast 2.79 million square feet of retail and office space. If all goes according to plans, the 985-foot tower will cost $1,400 per square foot to develop, as per The Real Deal. 

The upcoming tower at 50 Hudson Yards has already landed its anchor tenant. Asset Manager, BlackRock disclosed in May that it will occupy 847,000 square feet in the tower starting 2023.  It will pay $1.25 billion for a 20-year lease, or $60 a square foot over the first five years and $74 a square foot thereafter. In addition, the tenant will need to pay $30 per square foot in annual operating expenses and property taxes.

The Japanese Real Estate mogul said it is making the overseas investment to diversify, anticipating that office rents will fall in Tokyo. The city is building more office space just to accommodate the 2020 Olympic games, but the government expects Tokyo’s population to start dwindling after 2025, as reported by Reuters.

Mitsui Fudosan is no newcomer to the Big Apple. In the 1980s it acquired its headquarter building, the 2.3 million square-foot Exxon Building at 1251 Avenue of the Americas. Late in 2014, the company agreed to pay $259 million for a majority stake in 55 Hudson Yards, the 1.3 million-square-foot office building. It also owns 527 Madison Avenue, a boutique office building with 240,000 square feet. Further, it developed a 41-story rental building at 160 Madison Avenue.

By:  Hadassa Kalatizadeh