Hudson Yards Deal Inked

A joint venture of New York developer Related Cos. and Goldman Sachs Group Inc. has inked a deal to acquire the Hudson Yards, the largest undeveloped parcel of land in Manhattan.

The venture agreed to negotiate a 99-year lease to build atop an active rail yard on Manhattan's far west side. Over the term of the lease, the venture would pay slightly more than $1 billion in 2008 dollars, officials said. The deal comes despite a rapid slowdown in real estate development around the country, as the sluggish economy and the credit crunch weigh on the ability to finance construction.

Still, the pact is a coup for Related and its founder, Stephen M. Ross, who could end up presiding over a project that will take more than a decade to build and could generate substantial long-term profits. The Hudson Yards would include 13 buildings, including offices, apartments, hotels, shops and park space. There would be 12 million square feet of buildings, two million more than is planned for the rebuilt World Trade Center.

I'm glad this went through. It will no doubt take years and years before the land can be developed, but it will be great to actually utilize the space.

In another example of if you build it they will come, this should give more weight to extending the 7 train and building another tunnel connecting NY to NJ.