New building slated for Hudson Square, NYC
Beacon Capital Partners signs 99-year lease to erect a 350,000-square-foot building with office and retail space at 330 Hudson St. It’s the second big deal in two months for Beacon.
Trinity Real Estate signed a 99-year lease with an affiliate of Beacon Capital Partners to build an office building at the stalled development site at 330 Hudson St.
It is Beacon’s second investment in New York City in two months. In May, it signed a contact to buy between 70% and 80% of landmarked 195 Broadway from L&L Holding and its capital partner, GE Pension Trust, sources familiar with the transaction said.
Financial terms of Beacon’s deal with Trinity were not disclosed. The Boston-based real estate investment firm is planning an approximate 350,000-square-foot office building, including about 20,000 square feet of retail space at its base. Plans call for incorporating the site’s existing eight-story former warehouse into the new building, according to a Thursday statement by Trinity.
The proposed building is “as-of-right” and requires no zoning changes.
“We are delighted to welcome a company with the strength, experience and track record of Beacon Capital Partners to Hudson Square,” said Jason Pizer, president of Trinity Real Estate, in a statement. “They are committed to moving forward expeditiously on this key property, and we are confident the development will add immeasurably to the quality, vitality and excitement of this dynamic community.”
Several years ago Trinity leased the building to Tribeca Associates, which had planned to build a hotel on the site. However, Trinity took the site back last year after a nasty legal battle.
“With several new hotels in the area, the current proposed office/retail mix is clearly the most attractive and compelling development option,” Mr. Pizer said. He also pointed out that recent leasing activity throughout the portfolio offers another strong indication of Hudson Square’s promising future.
Meanwhile, Trinity had been negotiating for Pearson, the British media giant, to move into 330 Hudson St., sources said. It is unclear if those negotiations are still continuing.
Pearson would be a good fit for Trinity, which has turned its holdings in Hudson Square, just north of the Holland Tunnel entrance, into a mecca for media and creative firms. Pearson, whose holdings include Penguin Books and Financial Times, has offices in at least two buildings in New York: 1330 Sixth Ave. and 375 Hudson St.
Beacon, whose local holdings include 1211 Sixth Ave., was established in January 1998 and has sponsored seven investment vehicles with $11 billion in capital since its inception. Sources have said it is considering selling 1211 Sixth Ave.