Moneybags: Did Coach Really Cash Out Their Hudson Yards Space For $707 Million?
The chic hand bag company recently sold its headquarters in New York’s Hudson Yards development for $707 million.
I think it’s safe to say that anyone involved in Coach’s recent real estate transactions won’t be traveling by coach anytime soon. The chic hand bag company recently sold its headquarters in New York’s Hudson Yards development for $707 million under a sale and leaseback agreement, having paid $530 million for it three years ago.
The transaction wasn’t pure profit, though as Coach also paid $220 million to build out the space. The transaction is part of a broader deal that sees the property management unit of the German Insurance giant, Allianz buying a 44% stake in 10 Hudson Yards, the first building completed in the 1.8 million square foot tower. Coach populated the site to much fanfare, citing unique design that includes a giant video wall, a Coach product library, a 15 story atrium and double height conference rooms looking directly down on the high line. Their lavish building will not be going to waste, though. As part of the deal the company agreed a 20 year lease to stay put.
Related Cos. is leading the $20 billion, 28 acre Hudson Yards development with Oxford Properties Group. Without naming Coach, their anchor tenant, specifically, Related CEO, Jeff Blau told Bloomberg Televisionthat a deal along the lines of Coach’s “was always a part of the original plan…to stabilize the building and then recapitalize.”
Hudson Yards, is the largest private real estate deal since the economic downtown and will be completed in its entirety by 2025 with more than 125,000 people a day expected to either work it, visit or call Hudson Yards home. The development will include 17 million square feet of commercial and residential space and more than 100 shops and restaurants. When completed Hudson Yards is expected to generate nearly $500 million annually in New York City taxes and bring more than 55,000 jobs to the new neighborhood.
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