Sherwood Equities and Long Wharf Real Estate Partners sell Hudson Yards land for USD167m
Manhattan-based owner/developer Sherwood Equities and Boston-based Long Wharf Real Estate Partners have sold a 26,000-square-foot parcel of vacant land at the southern end of Hudson Yards to the McCourt Group, headed by former Los Angeles Dodgers owner Frank McCourt, for USD167.3m.
The land was acquired for USD43.5m in 2011. The deal, which closed on 30 August, was an off-market transaction involving no brokers.
The property is located at Tenth Avenue and West 30th Street (360 Tenth Avenue), next to the Spur at the High Line Park.
The zoning for the property is mixed-use, allowing for both commercial and residential uses. The base as-of-right floor area ratio of the property is approximately 296,000 square feet. McCourt Group will have an opportunity to purchase an additional 436,000 square feet from the City of New York for a total development of 733,000 square feet, of which 494,000 square feet would have to be devoted to commercial development under existing zoning. The remainder could be residential.
"We're extremely bullish on the immediate area and are currently in planning for projects on our other two sites in the Hudson Yards, which together comprise over two million square feet. We are also currently in negotiations to acquire another site in this district," says Sherwood president and chief executive Jeffrey Katz. "We began investing in this area over 25 years ago and it is finally now in the moment where it is all coming together at a scale that has never been imagined, even in the city of New York.”
Sherwood Equities is currently developing a high-end condominium project directly adjacent to the High Line, on a full block front, at 500 West 21st Street in West Chelsea. The firm is scheduled to begin sales for the new residence this winter at a separately constructed 4,000-square-foot sales gallery.
"As was the case with two of our other recent acquisitions in the area, when we acquired the site, we perceived that the discount for the property was way out of proportion for what it should have been. In essence, it was really a double-discount, due to the real estate downturn while the area was also still emerging," says Sherwood senior vice president of acquisitions and development Ryan Nelson. "We, along with our partners at Long Wharf, were able to execute at this price, in part because we aggressively closed on the transaction in only seven days from the time of offer acceptance to the time of closing."
Long Wharf made the investment on behalf of a fund it manages for institutional investors.
"We spent a great deal of time working with Sherwood trying to acquire this site from the bank, and when the opportunity arose we moved very quickly," says Philip Murphy, director of acquisitions at Long Wharf Real Estate Partners. "We felt there was a tremendous amount of intrinsic value in the land based on what was transpiring immediately around the site and, more importantly, what was about to happen in terms of both commercial and residential development."