Wells Fargo buying office space at New York’s Hudson Yards that was formerly a Nieman Marcus store
Wells Fargo & Co. is planning to spend $550 million to acquire 400,000 feet of retail space in New York City’s Hudson Yards and convert it into office space in one of the largest commercial real estate deals this year in the Big Apple, Bloomberg reported on Wednesday.
Wells Fargo
WFC,
plans to occupy floors five, six and seven at 20 Hudson Yards formerly occupied by Neiman Marcus, the report said, citing people familiar with the transaction.
A Wells Fargo spokesperson declined to comment.
The deal would mark a bright spot in the commercial real estate market, which has been under stress as office workers stay at home in the wake of the COVID-19 pandemic.
The move comes less than a year after private-equity investment firm KKR & Co. Inc.
KKR,
signed a lease to increase its headquarters size in New York City’s 30 Hudson Yards by 220,000 square feet, The Wall Street Journal reported in January.
KKR’s office footage included a sizeable chunk of space that Meta Platforms Inc.
META,
was exiting, the newspaper reported.
KKR paid more than $500 million in 2021 for a majority stake in the 2.6 million square foot 30 Hudson Yards building’s observation deck. It already owns about 240,000 square feet in the building.
The Wells Fargo and KKRs deals illustrate demand for office space despite recession and an increase in remote work.
Wells Fargo stock rose fractionally on Wednesday. The stock is down 1.5% so far in 2023, compared to a 10.6% rise by the S&P 500
SPX.
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