Kramer Levin Advises Related in Sale of Former Neiman Marcus Site at Hudson Yards to Wells Fargo

Kramer Levin advised Related Cos. in the conversion and sale of the former Neiman Marcus flagship store space at 20 Hudson Yards to Well Fargo for $550 million. The sale, one of the largest commercial property transactions in New York City, closed on Nov. 22, 2023.

After opening the store to great fanfare as the anchor tenant at the Shops at Hudson Yards less than 18 months earlier, Neiman Marcus closed it in July of 2020 two months after filing for bankruptcy after struggling when the pandemic erupted.

Wells Fargo plans to convert the 400,000 square feet – spanning floors five through seven as well as a new private ground floor lobby on Tenth Avenue – to office space and to create a New York headquarters at Hudson Yards. Related (and its partner Oxford Properties) retains ownership of the rest of the 11-story building.

As condominium counsel to Related for all of Hudson Yards, in addition to reconstituting the overall 20 Hudson Yards ownership structure to package the Neiman Marcus space as a new commercial condominium unit for sale to Wells Fargo and allow a seamless integration with Wells Fargo’s existing offices at the adjoining 30 Hudson Yards, the Kramer Levin team also advised on the purchase and sale agreement, development agreement, loan modifications and ground lease amendments necessary to implement the transaction. 

The deal was reported in Bloomberg, The Real Deal, The Commercial Observer​, and elsewhere.