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Enterprise application software developer to occupy top four floors at Related Co.’s under-construction, 1.7 MSF South Tower
NEW YORK, April 30, 2013 — In a deal that took nearly a year to structure, Jones Lang LaSalle has completed a new, long-term, direct transaction for SAP America Inc. (SAP AG), the market leader in enterprise software, with the Related Companies and its partner, Oxford Properties Group, in the South Tower of Hudson Yards. SAP executed the complex 15-year lease for approximately 115,000 square feet at the under-construction, Class A, LEED Gold-certified, 1.6 million-square-foot commercial office building.
SAP will be joining L’Oreal USA and Coach Inc. as the first tenants to lead the migration west to the Hudson Yards project, which is one of the largest private developments ever undertaken in the country. Hudson Yards will encompass more than 26 acres of Manhattan’s West Side, including more than 6 million of square feet of office space, 750,000 square feet of retail and 5,000 residential units.
SAP was represented by Alexander Chudnoff, executive managing director, and Scott Vinett, senior vice president, both with JLL, along with Christopher Joyner, executive vice president; and Steve Andrews, senior vice president with Fischer & Co.
“SAP, while looking to consolidate its offices within Manhattan, was also looking for a project that aligned itself with the greater business model and traditions of the company, including innovation, inspiration and excitement — the Hudson Yards project very much aligned itself with those characteristics,” said Chudnoff.
“The Related Companies, with Oxford Properties Group, were the perfect partners for the firm and executive team from SAP,” said Vinett. “Their goals for the future of the business and the West Side of Manhattan were complimentary.”
The building owner was represented by Robert Alexander, chairman; Howard Fiddle and Robert Stillman, vice chairmen; Leonard DiMicelli, senior vice president; and Ryan Alexander, associate, all with CBRE Inc.As part of the greater transaction, SAP will lease the top four floors of the dynamic South Tower, including a substantial useable terrace on the top floor overlooking all of Midtown, with panoramic views throughout. It is to become the flagship location for SAP in New York, although its headquarters will remain in Newtown Square, Penn.
“The project will allow SAP to showcase its greater technology/product line through the visions of these offices, and branding and marketing components that are rarely seen in New York,” said Vinett.
“The vision of the Related and Oxford ownership team, with the commitment of the city of New York, the High Line, which passes through the South Tower structure, and the ever-growing local community, helped lead to this momentous decision for SAP,” said Chudnoff.
JLL is a leader in the New York tri-state commercial real estate market, with more than 1,750 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2011, the New York tri-state team completed approximately 15.9 million square feet in lease transactions, arranged capital markets transactions valued at $1.57 billion, managed projects valued at more than $6.8 billion, and oversaw a property and facilities management portfolio of 63.6 million square feet and an agency leasing portfolio of 49.8 million square feet.
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management. For further information, visit www.jll.com.
George Shea, Mark Faris - Shea Communications