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Morgan Stanley Drops Out of Hudson Yards Bid

Today Charles Bagli reports that Morgan Stanley, the anchor tenant for Tishman Speyer’s bid, is backing out of a plan to build a new headquarters on the Hudson Yards site. According to the article Morgan Stanley is concerned the new tower will not be ready in 2013 when its current lease expires. Bagli says “Morgan Stanley’s move is the latest shadow to fall across the anticipated billion-dollar sale of the development rights over the railyards, and another indication that the project may not proceed as quickly as city officials had hoped.” The article also contains more details on the bidding process:

“The winning bidder will have to put up $20 million immediately and complete a final contract within four months, when it must make a $100 million down payment. The transportation authority expects that it will take 18 months after that to prepare the property for construction, and two to three years and about $1.5 billion to build platforms and foundations over the railyards.”

“‘Everyone’s hoping that by the time you need to finance it, the market is back to normal,’” said one bidder

Read “Morgan Stanley Retreating From Railyards Development,” by Charles Bagli in the New York Times