New York's Metropolitan Transportation Authority announced it chose the Related Cos. and Goldman, Sachs & Co. to develop the Hudson Yards on Manhattan's Far West Side in a deal worth $1.05 billion at net present value. The deal was put together quickly, slightly less than two weeks after an earlier agreement with developer Tishman Speyer collapsed.

The partnership plans to build 13 buildings on two 13-acre parcels that it expects will have total development costs reaching $15 billion. Related Cos. plans to use private equity to build an approximately $2 billion platform over the rail yards on which the approximately 13 million square foot development will be built. The development does not have an anchor tenant.

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.