Coach, Inc. has announced the sale of its global headquarters at 10 Hudson Yards in New York with plans to lease it back.
Purchase price was approximately $707 million (net of $77 million due to the developer of Hudson Yards) before transaction costs of $26 million, resulting in a gain of about $30 million which will be amortized over 20 years. Coach has simultaneously entered into a 20-year lease for the headquarters space.
“We are very pleased to monetize our investment in Hudson Yards, where we were the first company to commit to the project and will be the largest tenant in the new building,” says Victor Luis, Coach’s Chief Executive Officer. “We are bringing both our brands – Coach and Stuart Weitzman – together under one roof, in a modern work space, very much reflective of the Coach values and sensibility.”
“Coach has called New York City home since we were founded 75 years ago. We have long been part of this neighborhood and we are thrilled to be part of the new Hudson Yards development that is bringing opportunity, culture, and commerce to a great part of Manhattan. The overall design, the community integration with culture and the High Line as well as the modern amenities will continue to make Hudson Yards a sought-after destination.”