Related Is Buying Back WarnerMedia's Space At 30 Hudson Yards
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When Related started planning Hudson Yards, it offered prospective tenants a rare deal for a new office building: buy your space as a condominium to help fund the tower's construction.
That's the deal Time Warner took when it agreed to take a 1.4M SF spread in 30 Hudson Yards, the tallest tower at the $25B megaproject. The tower is still under construction, but Related is buying the space back, Reuters reports. The company was chosen as the winning bidder for the space last week, the publication said, citing an unnamed source.
Related is reportedly set to pay as much as $2B to buy WarnerMedia's stake in the building in a deal that could be among the highest prices paid in a single office sale in the country.
The building at 30 Hudson Yards spans 2.6M SF and reaches 1,296 feet. It is due to open this year and will be the second-tallest office building in the city when it does.
AT&T took over Time Warner last year in an $85B deal and is now trying to reduce debt, per Reuters.
WarnerMedia plans to lease back the space in a similar deal to the one its predecessor struck at Time Warner Center. In 2014, Time Warner sold its space in the center to Related and its foreign partners the Abu Dhabi Investment Authority and Singapore’s GIC. When WarnerMedia moves from that building to Hudson Yards, Deutsche Bank is already set to take its place.