Key facts
- Brookfield is in discussions to acquire a 10% stake in Hudson Square Properties, a Manhattan office complex.
- The 13-building portfolio is valued at $3.5 billion.
- Brookfield would replace Hines as the long-term operating partner.
- The deal is expected to close in the coming months.
- The Hudson Square area has a 23% office vacancy rate.
Brookfield is reportedly in negotiations to acquire a 10% stake in Hudson Square Properties, a 13-building office complex in Manhattan valued at $3.5 billion. The deal, expected to close in the coming months, would see Brookfield step in as the properties' long-term operating partner, with Hines exiting its stake.
The 6.2 million-square-foot campus is being positioned as a hub for tech and media tenants. Despite an elevated office vacancy rate of 23% in the Hudson Square and West Village areas, which is above Manhattan's overall 19%, the location has attracted significant tenants.
Recent leasing activity includes Anthropic finalizing a deal for an entire building at 330 Hudson Street, Google renewing its lease at 315 Hudson Street, and PayPal signing a lease at 345 Hudson Street. The portfolio has a long history, with the land originally granted to Trinity Church in 1705.
Brookfield, a major U.S. office investor, has faced challenges post-pandemic, selling assets valued at over $3 billion at significant discounts. This potential investment comes as Brookfield plans to refinance over $8 billion in office debt and divest approximately $10 billion in assets by 2030.