May 27, 2010

MTA Leases West Side Railyards Airspace to Related Companies

Paul, Weiss client Metropolitan Transportation Authority (MTA) yesterday announced a deal to sell the airspace over the MTA's 26-acre West Side Railyards, the largest undeveloped tract of real estate in Manhattan, to a joint venture established by Related Companies and Oxford Properties Group. The development will include over 12 million square feet of office, retail and residential development, including 5,000 residential units, along with 12 acres of open space, a new school, a cultural facility, and major public amenities. The binding contract will lease the site to Related for 99 years, with purchase options as buildings are completed. The deal, valued at over $1 billion for MTA, marks a major milestone of a project on which the firm has been working for over five years, and will be the biggest development project, by far, in New York City. The Paul, Weiss team representing MTA includes real estate partner Meredith Kane and associates Salvatore Gogliormella, Michael Roberts, Julia Milne and Emily Carey.