Hudson Yards Infrastructure Corporation - Commercial Real Estate Case Study - Cushman & Wakefield

C&W Delivers Hudson Yards Demand and Development Study


Hudson yards
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The Challenge

Hudson Yards Infrastructure Corporation (HYIC) was to issue a $1-billion bond offering that would be used to facilitate the development of the Hudson Yards district in Midtown Manhattan. A demand study was required to project future real estate related revenues from a PILOT program to be used to fund the repayment of the bonds. This study followed the initial assignment in 2006, which facilitated a $2-billion offering that was successfully issued.

 


The Solution

Following the successful completion of the original assignment in 2006, HYIC hired Cushman & Wakefield’s New York-based Valuation & Advisory multi-disciplinary team in 2011 to prepare a 30-year forecast of office, retail, residential, and hotel demand within the 45-block Hudson Yard district.

Working with Moody's Analytics, HYIC, and their underwriters, our forecasts were utilized to generate a series of inputs to a tax revenue calculation model developed by the City's Office of Management and Budget and the Hudson Yards Development Corp. The scope of our engagement also included presenting opinions as to the reasonableness of projected real estate related revenues.

 


The Result

Along with New York City officials and project underwriters, Valuation & Advisory presented the real estate forecast and associated revenues to the rating agencies. Both the original and current bond offerings received a rating of A, and were quickly fully subscribed.

 

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