MTA officials are reportedly in negotiations with Tishman Speyer Properties this weekend in preparation to award the real estate firm the winning bid on the 26 acre Hudson Yards property. An official announcement is expected at the MTA's board meeting next Wednesday, which will initiate four months of more detailed negotiations about the sale. The winning bidder will acquire the rights to develop commercial and residential properties at the site. A platform will also need to be built above the rail yards first, which could cost $1.5 billion above and beyond the initial purchase price.
The weakening real estate and economic environment has been winnowing the number of bidding candidates. The Related Companies could not gain a firm commitment from planned anchor tenant News Corp., seriously wounding its chances. As of yesterday, the choice appeared to have narrowed to one between Vornado Realty Trust with the Durst Organization and Tishman Speyer. Some speculated that Tishman Speyer's chances were injured by the recent loss of Morgan Stanley as its planned anchor tenant.