Brief

Tutor Perini scores NYC Hudson Yards contracts worth $1.2B

Dive Brief:

  • Developers Related Companies and Oxford Properties Group have awarded construction giant Tutor Perini $1.2 billion in contracts to build a residential tower and retail complex at the Hudson Yards development in Manhattan.
  • The 70-story, 960,000-square-foot Tower D will have 391 residential units, some for sale and others for rent, and also feature a fitness club and spaces for entertaining and social events. Neiman Marcus will anchor the seven-story, 1 million-square-foot retail development, which will offer more than 100 stores plus a variety of restaurants.
  • In January, Tutor Perini announced that its 2015 revenue was approximately $500 million less than expected and assigned the lion's share of the blame to problems related to the construction of Tower C, a 52-story, multi-use building, also at Hudson Yards and also for Related and Oxford.

Dive Insight:

At the time of its earnings announcement in January, Tutor Perini called Tower C, which was the first major building at the Hudson Yards development, the "first major loss for Tutor Perini on a fixed-price contract in the past 20 years." An update on Tower C was not included with this latest project award news.

"We are proud to be working with Related and Oxford on the Hudson Yards development, the largest privately funded development project in U.S. history, and we are pleased to continue our work on the newest Hudson Yards buildings currently under construction," Craig Shaw, Tutor Perini’s Building Group executive vice president, said in a press release.

This latest Hudson Yards development announcement is the third in the last several weeks. In early February, Tishman Speyer unveiled a Bjarke Ingels Group design for a 65-story glass skyscraper called "The Spiral," which will also be built in Hudson Yards. The building occupies a full block and will have a spiral of landscaped terraces wrapping upward around its exterior with an outdoor space on almost every floor. Tishman Speyer also announced plans for another tower, reportedly 1.3 million square feet, in Hudson Yards but hasn’t released further details about the project. 

In December, Related announced it had secured $5 billion in financing for development in Hudson Yards and said the money will be used to build a $20 billion project, which includes a 90-story office tower, observation deck and more than 17 million square feet of office, retail and residential space.

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