New York City and private real estate officials broke ground Tuesday on a 26-acre development at Hudson Yards, once the single largest piece of undeveloped property in Manhattan.

Construction commenced on the first tower, the 1.7 million-square-foot, 47-story South Tower — at 10th Avenue and 30th Street — the future home of Coach Inc.’s world headquarters. Joining Mayor Michael Bloomberg and City Council Speaker Christine Quinn were Related Co. chairman Stephen Ross and Bill Aziz, chairman of the investment committee of the Ontario Municipal Employees Retirement System pension fund.

“Developing Manhattan’s final frontier is the next major step in our city’s ongoing economic revival,” said Bloomberg.

Hudson Yards is linked to commuter rail, the subway system, the West Side Highway, Lincoln Tunnel and ferries on the Hudson River. The extension of the No. 7 subway to West 34th Street and 11th Avenue, set to open in 2014, will bring the subway to the neighborhood.

“We are delighted that the Hudson Yards project is taking such a tangible step forward,” said Metropolitan Transportation Authority chairman Joseph Lhota. “This project and the extension of the Number 7 subway will revolutionize the Far West Side and spur the creation of a new neighborhood.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.