Practically as long as Related and Oxford's Hudson Yards has been in the works, so too has Coach's plan to move its corporate headquarters into the megaproject's southeastern most office tower. After a 40-percent stake in 10 Hudson Yards appeared on the market last week, rumors surfaced that seemed to suggest the leather goods purveyor was looking to renege on that deal, but that's not the case. While Coach and a sovereign wealth fund have put a combined 40-percent stake in the building on the market, a comment obtained from Related confirms that the move is "part of a recapitalization of the building, which was planned," and that "Coach is still moving to the tower and will lease the same space always contemplated." Related's Chief Executive Officer Jeff Blau tells Bloomberg that it was "always part of the original plan" to recapitalize the building.
Coach purchased its 738,000-square-foot portion of 10 Hudson Yards for $530 million, or $718 per square foot, in 2013. According to Bloomberg, the recapitalization gives the company an opportunity to "profit off its early investment." After its stake sells, Coach will lease back its offices "as part of the sale of its interests." Other 10 Hudson Yards tenants include L'Oreal USA, VaynerMedia, and SAP AG. The angular glass tower topped out in early October.
· Hudson Yards Owners Seek Buyer for 40% Interest in First Tower [Bloomberg]
· Coach Tops Hudson Yards' Christmas Wish List [Curbed]
· All 10 Hudson Yards coverage [Curbed]