The Metropolitan Transportation Authority has closed a deal to allow development on top of the Long Island Rail Road yard on Manhattan's West Side as part of a $1 billion lease agreement, MTA officials announced yesterday.
The 99-year lease calls for the construction of a 26-acre platform on top of Hudson Yards. Related Companies and Oxford Property Group are leasing the property with plans to develop more than 13 million square feet of office, retail, residential, cultural and hotel space.
Retailers Coach and L'Oreal USA have signed on as tenants in the new space.
The MTA closed on the first part of the deal, which allows for construction on top of the eastern half of the yards, east of 11th Avenue. The second half of the deal, involving the western section, is expected to close by December, officials announced.
The estimated $1 billion in leasing fees will go toward the MTA's Capital Program and fund infrastructure maintenance and system expansion through projects like East Side Access, which will give the LIRR access to Grand Central Terminal, the MTA said in a statement.
Agency officials said the Hudson Yards development will not affect LIRR operations.
Jeff Blau, chief executive of Related Companies, said the project will bring "global tenants, state-of-the-art infrastructure, grand public spaces and signature residential, retail and cultural amenities" to the Hudson Yards site.