Industry News
May 9, 2008
By: Paul Rosta, Senior Associate Editor
The massive redevelopment of rail yards on Manhattan’s Far West Side is in limbo after talks between Tishman Speyer Properties and a local transit agency broke down late yesterday afternoon.
The surprise announcement puts in doubt the Metropolitan Transportation Agency’s plan to create a mixed-use community above 26-acre portion of rail yards the agency owns between 30th and 33rd Streets near the Hudson River. In late March, the MTA selected Tishman Speyer’s $1 billion bid to build up to 10 million square feet of office space, 550,000 square feet of retail, 3,000 residential units and 13 acres of open space. The project was to rise on a $2 billion platform above the rail yards, which would remain functional.
In a statement yesterday, MTA reported that the discussions had broken down over Tishman Speyer’s request for a re-zoning of the 13-acre western portion of the yards before the firm closed on the acquisition of the eastern 13 acres, which are already rezoned. “This demand changed the economics of the proposed deals and the certainty of payments to the MTA,” the agency added. “The MTA remains committed to developing these unique and very valuable parcels of land.”
For its part, Tishman Speyer indicated that it has not given up on the prospect of redeveloping the site. “This is a highly complicated deal and we have been negotiating in good faith with the MTA for several weeks,” the firm said in a statement. “We still hope to be able to complete this deal and reach an agreement that satisfies the needs of everyone.”
By: Paul Rosta, Senior Associate Editor
The massive redevelopment of rail yards on Manhattan’s Far West Side is in limbo after talks between Tishman Speyer Properties and a local transit agency broke down late yesterday afternoon. The surprise announcement puts in doubt the Metropolitan Transportation Agency’s plan to create a mixed-use community above 26-acre portion of rail yards the agency owns between 30th and 33rd Streets near the Hudson River. In late March, the MTA selected Tishman Speyer’s $1 billion bid to build up to 10 million square feet of office space, 550,000 square feet of retail, 3,000 residential units and 13 acres of open space. The project was to rise on a $2 billion platform above the rail yards, which would remain functional.
In a statement yesterday, MTA reported that the discussions had broken down over Tishman Speyer’s request for a re-zoning of the 13-acre western portion of the yards before the firm closed on the acquisition of the eastern 13 acres, which are already rezoned. “This demand changed the economics of the proposed deals and the certainty of payments to the MTA,” the agency added. “The MTA remains committed to developing these unique and very valuable parcels of land.”
For its part, Tishman Speyer indicated that it has not given up on the prospect of redeveloping the site. “This is a highly complicated deal and we have been negotiating in good faith with the MTA for several weeks,” the firm said in a statement. “We still hope to be able to complete this deal and reach an agreement that satisfies the needs of everyone.”
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