- Kristopher Fraser |
American leather goods and luxury brand Coach has announced the sale-leaseback of their global headquarters at 10 Hudson Yards in New York City. The company received a purchase price of 707 million dollars (net of 77 million dollars due to the developer of Hudson Yards) before transaction costs of 26 million dollars, resulting in a gain of 30 million dollars which will be amortized over 20 years. Coach has also entered a 20-year lease for the headquarters space.
Victor Luis, chief executive officer of Coach Inc., said “We are very pleased to monetize our investment in Hudson Yards, where we were the first company to commit to the project and will be the largest tenant in the new building. We are bringing both our brands – Coach and Stuart Weitzman - together under one roof, in a modern work space, very much reflective of the Coach values and sensibility.”
Coach announces sale-leaseback of 10 Hudson Yards
He added that "We have long been part of this neighborhood and we are thrilled to be part of the new Hudson Yards development that is bringing opportunity, culture, and commerce to a great part of Manhattan. The overall design, the community integration with culture and the High Line as well as the modern amenities will continue to make Hudson Yards a sought after destination.”
Coach acquired Stuart Weitzman last year for a total of 574 million dollars. The acquisition was an effort to help Coach revamp their image in the midst of declining sales and increased competition in the leather goods market.Hudson Yards is one of the most ambitious real estate projects in the history of New York City. The large scale redevelopment project is funded and constructed by New York City, the State of New York, and the Metropolitan Transit Authority. It is also the largest private real estate development in the history of the United States, with the expectations it will bring an economic boom for the city.
photo via Hudson Yards website