Coach Gets $707M For 44% Stake In 10 Hudson Yards

Construction On The Hudson Yards Megaproject Was Partially Financed By Eb-5 Foreign Investors.

Allianz, one of Europe’s largest insurers, has acquired a 44% stake in The Related Cos10 Hudson Yards, buying out both Coach and a part of the Kuwait Investment Authority. Allianz paid $420M in cash to complete the sale-leaseback deal, for which Coach received $707M.

Paying for part of a $1.2B mortgage along with Deutsche Bank and Goldman Sachs, the German-based insurer is helping recapitalize the 52-story, $2.15B West Side tower, which opened this year and hosts household names like Coach, L’Oréal USA, SAP, Boston Consulting Group, VaynerMedia, Intersection and Sidewalk Labs, The Real Deal reports.

Coach spent $750M for a 740k SF office condo, but has recently been shopping its stake in the building. The luxury retailer—repped by Eastdil Secured’s Doug Harmon—signed a 20-year lease to stay at its brand-new Hudson Yards HQ.

Allianz Real Estate of America CEO Chris Donner plans to hold the investment for more than a decade, although he insists he’s not concerned about the market’s “immediate volatility.”

Related plans to start Hudson Yards residential sales in the upcoming months. [TRD]

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