Continuing the discussion from NEW YORK | The High Line Park & District (10th Ave Corridor):
Related Cos. is eyeing the purchase of a pair of sites close to the elevated park on West 18th and West 19th streets for what would be a record price of more than $700 per square foot.
BY DANIEL GEIGER
MAY 13, 2014 1:38 P.M.
The Related Cos. is near to buying even more on the far West Side where it is already spending billions of dollars building millions of square feet of new space.
The company is in negotiations to purchase two development sites along the High Line, the elevated park that has become a tourist sensation and attracted some of the priciest new residential development in the city in the last few years.
In the deal, Related will acquire 511-525 W. 18th St., a low-rise garage building directly west of the High Line, and also a parking lot at 500 W. 19th St. that encompasses the full block between West 18th and 19th streets along 10th Avenue and abutting the east side of the High Line. According to sources, the company will pay more than $200 million for the sites, what is thought to be a record price for land in the neighborhood.
The deal mirrors an acquisition made just across West 19th Street by developer Ziel Feldman at the end of 2012, when Mr. Feldman similarly bought up parcels on that block that hug both the east and west sides of the High Line. Mr. Feldman is currently in the process of constructing two towers on the sites. Mr. Feldman, according to reports, paid just under $50 million for those sites, a quarter of what Related is paying.
According to sources, Related is planning to erect a 250-foot tall residential tower on the site west of the High Line. That building can span much of the block, where it will be adjacent to the Frank Gehry-designed IAC headquarters building. To build to that height in the High Line district, which normally caps development at 125 feet, Related will buy neighboring air rights that allow it to build higher.
Sources estimated that Related will pay more than $700 per square foot for the development, what is seen to be the highest amount paid yet for land in that area of Manhattan, where several residential development projects are currently underway.
Related is building huge residential and commercial towers in the Hudson Yards neighborhood at the northern end of the High Line, what is the largest construction project currently underway in the entire nation.