Cove, Baupost sell Hudson Commons for $1 billion


Cove Property Group and The Baupost Group announced the
$1.033 billion sale of Hudson Commons, the 697,958 s/f 25-story trophy tower at
441 Ninth Avenue to CommonWealth Partners in a transaction arranged by CBRE.

Located at the nexus of Hudson Yards and Manhattan West,
Hudson Commons occupies the full block-front of Ninth Avenue from 34th-35th

The property is New York City’s most highly regarded
redevelopment, pairing the adaptive reuse of an existing brick factory building
with a modern glass overbuild to set a new bar for “the office of the future.”

One of only four NYC office properties to achieve LEED
Platinum status, Hudson Commons is a beacon for sustainability and wellness,
designed pre-pandemic to be one of the nation’s healthiest office environments.
Hudson Commons offers an amenity-rich environment that evokes a luxury boutique
hotel while also delivering efficient, flexible space with high ceilings,
natural light, breathtaking views and cutting-edge technology.

“This transaction is a bellweather for the resurgence of
confidence in the office sector and validation for the value created by
forward-looking, sustainable redevelopment at a trailblazing location,” said
Kevin Hoo, Managing Partner of Cove Property Group. “Given the aging nature of
the majority of Manhattan’s office product, Hudson Commons is a model for the
office of the future in this City – sustainably adapting an obsolete property
into one that meets every modern standard, from environmental to operational to

A CBRE team led by Darcy Stacom and Bill Shanahan
spearheaded the marketing campaign for Hudson Commons and represented Cove in
the negotiations.

“The world-class combination of an old factory warehouse
with a stunning, healthy and efficient modern tower has been a beacon for
tenants and a standout in the creation of a new trophy property,” said Ms.
Stacom, Chairman and Head of New York City Capital Markets for CBRE. “This
transaction is a resounding affirmation of Cove’s achievement with this
renovation, the excellence of the location, and the enduring value of the
finest modern office properties in Manhattan.”

Cove and Baupost acquired 441 Ninth Avenue in 2016 for $330
million and executed an ambitious campaign to completely renovate the
eight-story warehouse building and add an 18-story modern glass-and-steel
overbuild. Hudson Commons achieves dramatic sustainability benchmarks,
synthesizing brand new infrastructure with enhanced air quality and 14 separate
outdoor terraces to meet LEED Platinum standard.

Designed from the inside-out to be “the office of the
future,” Hudson Commons’ side core configuration maximizes efficiency, light
and views and integrates touchless technology and innovative systems to create
a healthy environment. Flexible floorplates of 16,000 – 50,000 SF of nearly
column-free space with ceiling heights of 14-feet to 28-feet offer
intentionally democratized space for every tenant to enjoy a premier

“Hudson Commons is a trailblazing property, in location, in
design, in intention and in ESG. We are proud to become its steward as it
achieves its full potential,” said Brett Munger, CEO and Managing Partner of
CommonWealth Partners. “This property has been developed to enable its tenants
to attract and retain the very best talent in this new work environment, a base
for teams to safely come together and achieve their goals. Hudson Commons is
making a real contribution to the renewal of New York City.”

Hudson Commons is 75% occupied, with approximately 670,000
square feet of office space and 16,000 square feet of ground-floor retail
available. Fitness giant Peloton and rideshare innovator Lyft anchor Hudson
Common’s office tenancy. The property is richly amenitized, offering tenant
lounges, a bike room, outdoor space totaling nearly 30,000 sq. ft., meeting
rooms and conferencing facilities designed to evoke a luxury hospitality

The full CBRE team for this transaction includes Ms. Stacom,
Mr. Shanahan, Doug Middleton, and Alana Bassen. A Cole Schotz team including
Leo Leyva, Jordan Metzger, Danielle Pasquariello, Rab Nalavala, Jan Lewis and
associate Daniela Alvarado, represented the seller in the transaction.

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