SL Green says One Vanderbilt will bring in $200M a year
SL Green Realty CEO Marc Holliday said Thursday that the midtown office tower One Vanderbilt is expected to pull in as much as $198 million a year in net operating income when complete in 2020 and fully leased, The Real Deal reports. That figure, in 2028 dollars, likely includes $42 million in admission fees for the building’s planned observation deck and is based on the assumption that the tower will be leased out at an average of $155 per square foot. If realized, that figure would put the 1.7-million-square-foot, 1,401-foot-tall tower in a league with some of the the city’s significantly larger trophy properties.
For comparison, One World Trade Center, twice the size of One Vanderbilt, projected that its office space would bring in an annual operating income of $144 million by 2019, assuming that it’s 95 percent leased at an average asking rent of $70.6 per square foot, less than half the $155 expected for the midtown skyscraper. The observation deck at the city’s tallest tower is expected to add an additional $53 million bringing the income figure to $197 million. One World Trade Center was 69 percent leased as of June, and generated a profit of $12.5 million in 2015 according to the Port Authority.
SL Green–the city’s largest office landlord– expects that One Vanderbilt will cost over $3.2 billion to complete. It was also announced Thursday that National Pension Service of Korea assumed a 27.6 percent stake in the building, which, along with an investment by Hines, will provide $525 million for the project.
[Via TRD]
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