Extell Wants To Sell Its Hudson Yards Rental Building For Nearly $800M
Extell Development is looking to sell its luxury rental tower in Hudson Yards for more than three-quarters of a billion dollars.
The building at 555 10th Ave., known as 555TEN, features 600 units and was completed two years ago, The Real Deal reports. Extell is seeking a $775M payday on the property, one of the first residential skyscrapers to be built in the Hudson Yards area's current booms.
The 56-story building spans 476K SF of residential space and 6K SF of retail space. It has 11 active units with an average asking price of $5,705, according to StreetEasy. It features a bowling alley and an outdoor dog park.
Extell has control of the property through a 99-year ground lease. It signed that lease in 2011 for $29M with Solil Management.
In 2016, RXR Realty loaned Extell $463M in exchange for preferred equity on 555TEN as well as 500 East 14th St. and 250 South St. RXR owns 7% of the property as part of the deal, but is entitled to 50% of the proceeds.
The luxury rental market has taken a hit in recent years, with many landlords in the city dangling generous incentive packages and free rent in order to fill units.
However, the multifamily sector has seen increased investor action lately after two years of a sales funk. A fund managed by the Carlyle Group is said to be paying $284M for 1 QPS Tower in Long Island City. Meanwhile, Sam Zell’s Equity Residential is looking to sell two of its Manhattan apartment buildings, a high-rise tower at 800 Sixth Ave. in Chelsea, as well as a 12-story building at 505 West 54th St. in Hell’s Kitchen.
Newmark Knight Frank's Jimmy Kuhn is leading the team marketing 555TEN.