Allianz Real Estate has closed on its acquisition of WarnerMedia’s office condo at 30 Hudson Yards in a deal that values the asset at $2.2 billion, according to Reuters. Allianz is joining Related in the deal, taking a 49 percent stake in the asset. The condo unit spans 1.46 million SF, and takes up 26 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.
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. In 2016, Allianz bought a 44 percent stake at nearby 10 Hudson Yards from retailer Coach giving them a familiarity with the complex.
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.