Approximately $350 million investment expected
to create more than 1,300 jobs during construction period, 400
permanent jobs and contribute $6.4 billion to the local economy
over the next 30 years
Project to add several public amenities,
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
Today, Vornado Realty Trust (NYSE: VNO), Hudson Pacific
Properties (NYSE: HPP), Blackstone (NYSE: BX), the City of New
York, and New York City Economic Development Corporation (NYCEDC)
announced they 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.
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the full release here:
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Sunset Pier 94 Studios will be the first
purpose-built studio campus in Manhattan, solidifying New York as a
leading market for content production (Photo: Business Wire)
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. “Together we’ll raise the bar for one of New York
City’s signature industries and breathe new life into a key
waterfront site.”
“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. “Once again we are leveraging our industry
relationships and unique expertise in building and operating
premier facilities for leading content creators in the
highest-barrier-to-entry global media markets to create long-term
value for our shareholders.”
“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.
“With our administration’s leadership, New York City is back –
we have recovered 99 percent of the jobs lost during the pandemic,
and visitors from across the world are returning to Broadway and
Times Square,” said New York City Mayor Eric Adams. “At the same
time, from Willets Points in Queens to Kips Bay in Manhattan to
Kingsbridge Heights in the Bronx, we are advancing bold economic
development projects across the entire city that will create tens
of thousands of family-sustaining jobs in our communities, and the
activation of Pier 94 will produce the same kinds of economic
opportunities on the West Side of Manhattan. This project will
bring critical, long-awaited investment to this public asset, turn
an underutilized space into an economic driver, and improve public
space and quality of life for New Yorkers.”
“Transforming Pier 94 into a world-class film and television
production studio delivers multiple goals that are key to our
continued recovery: economic development, local job creation, and
public realm improvements,” said Deputy Mayor for Housing, Economic
Development and Workforce Maria Torres-Springer. “This partnership
between NYCEDC, Vornado, Hudson Pacific, and Blackstone will
quickly revitalize this key waterfront asset and fortify our
position as the capital of film and media.”
“Sunset Pier 94 Studios demonstrates a monumental public-private
partnership that will have a lasting impact on our city by creating
400 film and TV jobs, over 1,300 construction jobs, along with an
estimated economic impact of $6.4 billion over the next 30 years,”
said New York City Economic Development Corporation (NYCEDC)
President & CEO Andrew Kimball. “NYCEDC and our partners in
this project look forward to the development and completion of the
pier space – including significant improvements to the public realm
and waterfront access on the west side of Manhattan that all New
Yorkers will be able to enjoy. This project further advances
NYCEDC’s mission of transforming New York City into a great place
to live, work, do business, and play.”
Pier 94 will cement New York City as one of the preeminent
places for the film and television industry to film while also
contributing to the needs of the local community. Plans for the
266,000-square-foot Sunset Pier 94 Studios include six
purpose-built soundstages with production control room facilities
and 145,000 square feet of production support space and offices,
with stunning Hudson River views and ample on-site parking. Several
stages will have technological infrastructure for adaptation to
virtual production. The facility’s location, design, size and
technological capabilities will provide world-class convenience and
flexibility for episodic television, live audience television and
feature films. In alignment with the broader Sunset Studios
portfolio, Sunset Pier 94 Studios will prioritize sustainability,
targeting LEED Gold and Fitwel certification, with plans for
operations to be powered by 100% renewable energy.
The new facility will be the first New York location for Hudson
Pacific and Blackstone’s growing studio platform and synergistic
with its existing Los Angeles operations. With the addition of
Sunset Pier 94 Studios, Sunset Studios will comprise 69 existing
and planned stages globally across six purpose-built facilities,
all in top-tier locations within the well-established and supply
constrained production epicenters of Los Angeles, London and New
York. Hudson Pacific’s Quixote brand operates an additional 26
stages in Los Angeles and New Orleans and services productions in
Los Angeles, New York, Atlanta, New Orleans and Albuquerque.
About Vornado Realty Trust
Vornado is a fully integrated real estate investment trust
(“REIT”) with a portfolio of premier New York City office and
retail assets and the developer of the new PENN DISTRICT. While
concentrated in New York, Vornado also owns the premier assets in
both Chicago and San Francisco. Vornado is a real estate industry
leader in sustainability, with over 27 million square feet of
LEED-certified buildings and over 23 million square feet at LEED
Gold or Platinum.
About Hudson Pacific Properties
Hudson Pacific Properties (NYSE: HPP) is a real estate
investment trust serving dynamic tech and media tenants in global
epicenters for these synergistic, converging and secular growth
industries. Hudson Pacific’s unique and high-barrier tech and media
focus leverages a full-service, end-to-end value creation platform
forged through deep strategic relationships and niche expertise
across identifying, acquiring, transforming and developing
properties into world-class amenitized, collaborative and
sustainable office and studio space. For more information visit
HudsonPacificProperties.com.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has US
$333 billion of investor capital under management. Blackstone is
the largest owner of commercial real estate globally, owning and
operating assets across every major geography and sector, including
logistics, residential, office, hospitality and retail. Our
opportunistic funds seek to acquire undermanaged, well-located
assets across the world. Blackstone’s Core+ business invests in
substantially stabilized real estate assets globally, through both
institutional strategies and strategies tailored for income-focused
individual investors including Blackstone Real Estate Income Trust,
Inc. (BREIT), a U.S. non-listed REIT, and Blackstone’s European
yield-oriented strategy. Blackstone Real Estate also operates one
of the leading global real estate debt businesses, providing
comprehensive financing solutions across the capital structure and
risk spectrum, including management of Blackstone Mortgage Trust
(NYSE: BXMT).
About New York City Economic Development Corporation
New York City Economic Development Corporation is a
mission-driven, nonprofit organization that works for a vibrant,
inclusive, and globally competitive economy for all New Yorkers. We
take a comprehensive approach, through four main strategies:
strengthen confidence in NYC as a great place to do business; grow
innovative sectors with a focus on equity; build neighborhoods as
places to live, learn, work, and play; and deliver sustainable
infrastructure for communities and the city's future economy. To
learn more about what we do, visit us on Facebook, Twitter,
LinkedIn, and Instagram.
Forward-Looking Statements for Vornado Realty Trust
Certain statements contained herein may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not guarantees of performance. They represent
Vornado’s intentions, plans, expectations and beliefs and are
subject to numerous assumptions, risks and uncertainties. Vornado’s
future results, financial condition and business may differ
materially from those expressed in these forward-looking
statements. You can find many of these statements by looking for
words such as "approximates," "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "would," "may" or other similar
expressions in this press release. For a discussion of factors that
could materially affect the outcome of our forward-looking
statements and Vornado’s future results and financial condition,
see “Risk Factors” in Part I, Item 1A, of its Annual Report on Form
10-K for the year ended December 31, 2022. Currently, some of the
factors are the increase in interest rates and inflation and the
continuing effect of the COVID-19 pandemic on our business,
financial condition, results of operations, cash flows, operating
performance and the effect that these factors have had and may
continue to have on Vornado’s tenants, the global, national,
regional and local economies and financial markets and the real
estate market in general.
Forward-Looking Statements for Hudson Pacific
Properties
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases that are predictions
of or indicate future events or trends and that do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond Hudson Pacific’s control,
which may cause actual results to differ significantly from those
expressed in any forward-looking statement. All forward-looking
statements reflect Hudson Pacific’s good faith beliefs, assumptions
and expectations, but they are not guarantees of future
performance. Furthermore, Hudson Pacific disclaims any obligation
to publicly update or revise any forward-looking statement to
reflect changes in underlying assumptions or factors, of new
information, data or methods, future events or other changes. For a
further discussion of these and other factors that could cause
Hudson Pacific’s future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors”
in Hudson Pacific’s Annual Report on Form 10-K filed with the
Securities and Exchange Commission, or SEC, and other risks
described in documents subsequently filed by Hudson Pacific from
time to time with the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20230829239630/en/
Vornado Tom Sanelli (212) 894-7433
tsanelli@vno.com
Hudson Pacific Properties Investor
Contact: Laura Campbell (310) 622-1702 lcampbell@hudsonppi.com
Media Contact: Laura Murray (310) 622-1702
lmurray@hudsonppi.com
Blackstone Jillian Kary (212)
583-5379 Jillian.Kary@Blackstone.com
Blackstone (NYSE:BX)
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