Related has entered into contact to buy back WarnerMedia’s office condo at 30 Hudson Yards for $2.2 billion. Allianz Real Estate is joining Related in the deal, taking a roughly 45 percent stake in the asset, CO reported. The condo unit spans 1.5 million SF, and takes up the 16th through 51st floors of the 101-story tower.
Be Smart: The deal was structured as a sale-leaseback in which the media giant will continue to occupy the office space through 2034. It was first reported by Reuters earlier this month.
How we got here: Related and Oxford Properties sold office condos to Time Warner (Now AT&T’s WarnerMedia), Wells Fargo, and KKR during the development of Hudson Yards. These owner-occupied condo deals were instrumental in the financing of the project.
The backdrop: AT&T’s $85 billion takeover of Time Warner! The company now intends to shave $20 billion off its net debt of $171.3 billion.