555 Greenwich: A Cornerstone in South Broadway's Transformative Journey

Revitalization of South Broadway Submarket

‍The South Broadway submarket, identified as the smallest among the seven geographic New York Metro submarkets, encompasses 20.5 million square feet, representing 5.3% of the total metro inventory. This rezoning was a pivotal moment, marking a transition from an industrial area to a mixed-use neighborhood. The plan, which took five years to materialize, allowed for denser residential and retail development, establishing a thriving district nestled between Tribeca and Soho.

The rezoning, initiated by Trinity Church Wall Street, was the largest privately-initiated rezoning in the city's history. It aimed to address the outdated zoning that hindered residential development while permitting hotel/condo towers. The transformation was well-received, especially by Trinity, which owned about 40% of the neighborhood. The rezoning brought about changes like reduced building height limits, provisions for more affordable housing, and additional funding for open spaces. It also entailed an agreement with the Landmarks Preservation Commission to vote on landmarking part of the South Village Historic District to mitigate adverse effects from spillover development​​.

Post-rezoning, the area saw the construction of over 3,000 new residential units, 140,000 square feet each of retail and office space, community facilities, and a new elementary school for 450 students. The first major development post-rezoning was at 70 Charlton Street. The influx of residential and commercial spaces attracted tech firms, media companies, and led to the construction of luxury condominium buildings, significantly altering the neighborhood's landscape from its industrial Printing District days​.

The change drove a surge in development, making Hudson Square a desirable residential and commercial hub. Media companies were among the first to move in, attracted by the area's large warehouse-style buildings. Promised development projects like a SHoP Architects’ 26-Story Two Hudson Square symbolized the area's ongoing transformation. Moreover, developers began snapping up sites, indicating a growing interest and investment in the area​​.

The Purchase of 555 Greenwich

‍On June 5th, 2023, Hudson Square Properties announced the closure on the purchase of 555 Greenwich, a 16-story commercial building in Hudson Square. Hudson Square Properties, a joint venture by Trinity Church Wall Street, Hines, and Norges Bank Investment Management, comprising a portfolio of 12 buildings, offers around 6 million rentable square feet. These office buildings are currently undergoing redevelopment to establish a hub for creative industries and businesses. Added to the HSP portfolio in April 2023, 555 Greenwich Street is a prominent address located in the trendy neighborhood of Tribeca in Manhattan, New York City. The closure of this deal is a pivotal step within the framework of an agreement initiated in 2019. This development is the 13th asset in the joint venture’s thriving operating portfolio encompassing over six million square feet. The general contractor for the property, Tishman Construction, broke ground on the development, back in the summer of 2021. Construction on the office building began in July 2021, with construction costs totaling approximately $175 million. Nearly two years later, the development is completed in April 2023, with the first tenant set to relocate to the building in early September (235,458 SF of class A office space remains available from the 4th to the 16th floor).

Architectural and Historic Significance

‍The 274,534-square-foot building links to 345 Hudson Street next door through a horizontal extension, resulting in a total combined office space of 715,000 square feet. While they will each retain distinct addresses, the floorplans seamlessly integrate the new building with the existing structure, effectively creating a horizontal overbuild extension. It contributes roughly 200,000 square feet of office space, around 15,600 square feet dedicated to tenant amenities, and additional square footage for commercial use, including ground-floor retail units and a restaurant. This building is not only an architectural landmark but also holds cultural significance within the city. It is a part of the Tribeca West Historic District, an area known for its historic architecture. The district is home to a collection of 19th-century industrial and commercial buildings that have been preserved and repurposed over the years, and 555 Greenwich Street is one such building. Designed by Cookfox Architects, 555 Greenwich Street is set to have ground-level retail spaces along with office accommodations on the upper floors. The building's exterior design will incorporate multiple setbacks, complete with outdoor terraces and expansive floor-to-ceiling windows. 555 Greenwich Street and 345 Hudson Street will offer expansive floor plates reaching as large as 87,000 square feet, complemented by a generous 33,000 square feet of outdoor space distributed across 11 beautifully landscaped terraces, along with ground-floor retail spaces. Both properties are committed to surpassing New York City's 2030 climate goals for office buildings by more than 45%, align with New York State's 2050 carbon neutrality objectives, and attain the top sustainability rating, LEED Platinum. The development underwent deep refurbishment to transform it from a “brown” to a “green” asset.

Comparative Market Analysis

‍The sale price per square foot at 555 Greenwich Street is one of the highest amongst new constructions completed from 2021 to 2023. It closely compares to that of the newly transformed St John’s terminal into future Google offices also completed in April 2023. Indeed, Google has committed a substantial $1 billion towards the development of 1.7 million square feet of office space within the vicinity, encompassing properties at 315 Hudson Street and 550 Washington Street. Substantial office and mixed-use properties currently under construction are set to attain completion in 2024 in the South Broadway neighborhood. One such example is the ongoing construction at Disney's expansive new headquarters situated at 137 Varick Street, set to be complete as of January 2024. Another example would be 101 Franklin Street, a 16-floor office building developed by Columbia Property Trust, also set to complete construction as of January 2024. Furthermore, similarly to South Broadway, the Midtown South neighborhood offers several recently completed construction properties for multi-tenant and office spaces.

Conclusion

‍In summary, the newly completed 555 Greenwich Street in Tribeca for Class A office space represents an exciting addition to the thriving landscape of the historic Tribeca neighborhood. This development not only exemplifies the continuous growth and diversification of the New York City commercial real estate market but also underlines the enduring appeal of Tribeca as a prime destination for businesses seeking Class A office space. With its modern and sustainable design, state-of-the-art amenities, and strategic location, this project is poised to meet the high standards and demands of top-tier businesses and contribute to the ongoing transformation and prosperity of Tribeca as a hub for innovation and commerce in the heart of Manhattan. As the city's economic landscape evolves, this Class A office space in Tribeca promises to play a significant role in shaping the future of the business district and further solidifying its status as a premier destination for top-tier organizations.