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250,000 S.F. Building DHL’s New Shipping HQ

Shipping giant DHL has signed a 20-year deal for a seven-story building in New York City near the entrance of the Lincoln Tunnel.

Shipping giant DHL has signed a lease for the entire 500 10 th Avenue, a 250,000-square-foot property on West Side of Manhattan. The 20-year deal, which is valued at more than $181 million, is guaranteed by Deutsche Post AG, the German parent company of DHL. Mitchell Rutter, president of Essex Capital Partners, and Jacob Frydman, CEO of White Acre Equities, acquired and redeveloped 500 th 10 th Avenue in a joint venture.

Known to many as the REMCO Building, 500 10 th Avenue is located on the western block-front of 10 th Avenue between 38 th and 39 th streets. The seven-story building abuts the entrance of the Lincoln Tunnel, providing DHL with the easiest possible access for its shipping operations. DHL plans to create an identity with the property, wrapping the entire, highly visible building in DHL colors.

The deal with DHL allows Frydman and Rutter to retain rights for additional construction above the existing building in the future. The property has permanent open light and air on north and west sides, which accommodate below-grade tunnel access, and construction above the building would offer extraordinary views, including vistas of the Hudson River to the west and the Midtown skyline to the east.

“We acquired the property before the Hudson Yards rezoning occurred and this transaction enables us to maximize immediate value in the property while preserving additional development benefits that will come as the neighborhood develops and changes,” says Rutter.

“This property provides DHL with a powerful position to advance its expansion in New York’s shipping market,” says Frydman. “The building, which will anchor the proposed boulevard through the Hudson Yards District, will occupy an important position as this neighborhood evolves.”