Forward Thinking Asset Management Firm CBAM Chooses West

Forward Thinking Asset Management Firm CBAM Chooses West

Almost one year ago I wrote an article discussing how good product is beating good location. Since that post, Intercept Pharmaceuticals signed a lease to leave the Meatpacking District for 55 Hudson Yards, the NHL signed a lease to leave Sixth Avenue for 1 Manhattan West and, most significantly, BlackRock signed a lease to leave Park Avenue to anchor 50 Hudson Yards. The opening sentence of this New York Times article on the BlackRock transaction validates my point:

“BlackRock, the giant financial company that manages $5 trillion in assets, reached an agreement on Wednesday to move from a prestigious Park Avenue address to a neighborhood on the Far West Side of Manhattan that was once home to warehouses, rail yards, tenements, dockworkers and teamsters.”

More recently, I published a Q1 2017 market update that discussed more companies moving west (Silverlake, Cooley and Third Point). For the most part, all of these companies won’t move into their buildings until 2019 and even later for Blackrock (2022). By the time they move in, the story about Hudson Yards (if all goes to plan) will be a reality — parks, retail, hotels, equinox, apartments, etc. But what about smaller sized opportunities for firms looking to get in on the action? While there are not many alternatives, for select tenants that are opportunistic and willing to move quickly, joining in on the story is possible. And you can do it now.

My partner, Mike Movshovich, and I recently represented a new alternative asset management firm, CBAM, in their lease on the 41st floor of 10 Hudson Yards. We visited them last month and it was amazing to see them up and running (CBAM is the first tenant to move into the 41st floor.) The views from the floor, south to the World Trade Center and west over the Hudson River, are amazing. After seeing the space, we walked the highline and had drinks at Hotel Americano, which made for a fun night.

CBAM committing to 10 HY is unique and a testament to the forward thinking approach of the partners as well as the evolution of the West Side into a great new neighborhood. Mike and I couldn’t be more excited for them.