Coach signs 20-year lease on headquarters, sells interest in HQ
Hudson Yards has a longtime tenant in Coach. The company announced on Monday that it has entered a 20-year lease for its new headquarters space, and it announced the sale-leaseback of its global headquarters at 10 Hudson Yards in New York City.
Coach received a purchase price of $707 million (net of $77 million due to the developer of Hudson Yards) before transaction costs of $26 million, resulting in a gain of about $30 million, which will be amortized over 20 years.
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.”
The luxury accessories brand moved its headquarters to Hudson Yards at the end of May, and so far Coach has been joined by L’Oréal, which moved 150 employees to Hudson Yards in June. Coach committed to moving to Hudson Yards in 2013, and it currently occupies floors 9 through 24 at 10 Hudson Yards.
Hudson Yards will welcome a number of tenants over the years including Neiman Marcus, which will open its first New York City flagship store in 2018 in the area, and Amazon that will open its first East Coast brick-and-mortar store in the area.
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