Vornado Realty Trust, Hudson Pacific Properties, Blackstone, the City of New York, and New York City Economic Development Corporation (NYCEDC) have entered into Manhattan’s first public-private partnership venture to build a purpose-built studio campus at Pier 94.
Vornado, who contributed its long-term leasehold for Pier 94 to the venture, will own 49.9%; Hudson Pacific will own 25.6%; and Blackstone’s institutional Core+ Real Estate strategy will own 24.5%.
Vornado will be responsible for development and Hudson Pacific will provide design oversight and manage the facility’s leasing and operations.
Sunset Pier 94 Studios will be a first-of-its-kind space, home to both state-of-the-art film and production technology that will make New York City even more competitive with other comparable markets, as well as impressive amenities for all New Yorkers including new public restrooms for Hudson River Park, an 1,850-square-foot community amenity space, 25,000 square feet of waterfront open space and pier access, and safety improvements to the bikeway. There will also be a program to support workforce development and training programs to connect local residents to opportunities in film, television, commercial and other media production.
The project represents a total investment of approximately $350 million from Vornado, Hudson Pacific and Blackstone, and is expected to create more than 1,300 construction jobs, 400 permanent jobs and contribute $6.4 billion to the local economy over the next 30 years.
Construction will begin in third quarter 2023, utilizing $183 million in construction financing led by RBC, and delivery of the project is expected by year-end 2025.
“Our partnership with Blackstone, Hudson Pacific, and the City of New York will solidify New York as a leading market for content production and studio space, create jobs, drive economic momentum, and deliver a host of amenities to the surrounding community,” said Michael Franco, President and Chief Financial Officer at Vornado Realty Trust.
We are thrilled to partner with the City of New York, Vornado, and Blackstone to bring this unparalleled, ideally located production experience to New York. The city has an extensive, well-established production infrastructure yet is highly supply constrained in terms of stages,” said Victor Coleman, Chairman and CEO of Hudson Pacific.
“Content creation is one of our key global investment themes, and we are thrilled to be part of this one-of-a-kind, public-private partnership that delivers for our investors while aiming to create more than 1,300 construction jobs and 400 permanent jobs, and contribute $6.4 billion over the next 30 years to the local New York City economy. I want to thank the City of New York, Mayor Eric Adams, and the New York City Economic Development Corporation for helping make this project possible,” said Nadeem Meghji, Blackstone’s Head of Real Estate Americas.
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