Hudson Yards dig

Frank McCourt Purchases $167 Million Plot in Manhattan’s West Side

Posted on September 14, 2013 · Posted in Acquisitions, Development

Former LA Dodgers owner Frank McCourt has made his first investment in New York City with a recent purchase of a $167 million development site on Manhattan’s West Side. Mr. McCourt, who made his initial fortune as a Boston developer, plans to begin development on a 730,000 square foot tower soon.

This tower would be his biggest real estate development site yet and is going to include both office and residential space. McCourt Partners, McCourt’s LA based real estate investment firm, opened an office in Midtown Manhattan in January and will pay more than three times what the site’s previous owners paid. New York based Sherwood Properties and Boston based Long Wharf Real Estate Partners bought the property at 30th Street and 10th Avenue for $43.5 million in 2011 after Barclays Capital Real Estate had repossessed it from its previous owner.

The tower is located in the heart of a $15 billion office and residential district planned for the city’s West Side. The deal highlights a notable increase in prime Manhattan property in the past few years. Developers and the Bloomberg administration are confident that the extension of the Number 7 subway line west of Times Square and new parks and infrastructure totalling $3 billion will transform the far West Side of Manhattan into a premier office district in Manhattan.

Ground was broken in late 2012 on a new 46 story office tower for handbag manufacturer Coach Inc., directly across the street from the new McCourt site. According to people familiar with the issue, Time Warner Inc. is in discussions to anchor a planned a new 80 story tower at West 33rd St. and 10th Ave.

Mr.McCourt’s family is a Boston based real estate family with over 100 years of history in the area. He emerged on the national sports arena with his investment in the LA Dodgers which he bought in 2004 for $430 million and sold last year for $2.15 billion to an investment group including basketball hall-of-famer Earvin “Magic” Johnson. He made headlines during his ownership of the team for his feud with MLB Commissioner Bud Selig, his bankruptcy filing for the team, and his high profile divorce.

Photo credit: horsepunchkid