Tishman Speyer To Build Hudson Yards On 26 Acre Manhattan Railyard Lot

New York City, NY (AHN) - With a bid of $1 billion, real estate developer Tishman Speyer Properties acquired the last largest block of undeveloped property on Manhattan's West Side. With its new acquisition, the owner of Rockefeller center and Chrysler Building will develop on the 26 acres of two Long Island lots a new community with residential apartments, office buildings, shopping malls, parks and a school.

The twin sites, located on each side of 11th Avenue between W. 30th and W. 33rd Streets, will be known as Hudson Yards.

Tishman will be given a 99-year lease on the land. The firm won after outbidding its closest competitor by $39 million. It will build a $2 billion platform over the rail yard to serve as support for the buildings. If train service is interrupted because of the construction work, Tishman agreed to pay hefty fines.

The real estate developer did not disclose a timetable for its newest venture. According to Tishman's plans, the east side would have 444 condo units spread in four buildings and 528 apartments for rent, and two office buildings. The west side will also have four condominiums with 1,092 units, two more buildings with 984 units for rent including 197 units for low-income tenants, and two commercial towers.

The bidding was handled by the Metropolitan Transportation Authority, which owned air rights over its rail yards in Hudson. To give New Yorkers a peek at how the development will impact the city, Mayor Michael Bloomberg said, "Just think how Rockefeller Center transformed midtown Manhattan... This is going to do the same thing for the Far West Side."

The project announcement comes at a time when America's real property market is on a slump due to the subprime mortgage crisis.