Coach is selling its 40% interest in 10 Hudson Yards, but will still move into building as originally planned,
“This was always part of the original plan,” Related Chief Executive Officer Jeff Blau told Bloomberg Business. “It was always our intent to stabilize the building and then recapitalize.” Coach paid $530 million, or $718 a square foot, for its 738,000-square-foot portion of the tower back in 2013.
The sale will allow investors to take a position in a completed piece of the project, an opportunity Doug Harmon called a “rare and incredibly valuable front-row seat” in an interview with Bloomberg Business. Harmon is the senior managing director at Eastdil Secured LLC, who is marketing the stake.
As for Coach, the recapitalization will allow it to profit off its early investment of $530 million, a deal which it signed in 2013. Its offices are not going anywhere, though: “We are committed to our move to the new Coach building at 10 Hudson Yards,” spokeswoman Andrea Shaw Resnick wrote Bloomberg Business. “A long-term lease would be part of any transaction.”
Coach will have plenty of company when it does settle in. With the recent addition of Boston Consulting Group, the tower is more than 90 percent committed.
Coach was the first company to commit to space at Hudson Yards, back in 2011. Its decision to sell its stake marks a new chapter in Hudson Yards’ history.