Wells Fargo to Buy NYC's Neiman Marcus Space for $550M

Wells Fargo & Co. is buying the former Neiman Marcus space at Manhattan’s Hudson Yards for roughly $550 million and plans to convert it into offices, according to people with knowledge of the deal.

The transaction includes about 400,000 square feet (37,000 square meters) spanning floors five through seven at 20 Hudson Yards, according to the people, who asked not to be identified because the matter is private.

The sellers are the developers, Related Cos. and Oxford Properties Group, which still own the rest of the 11-story building, home to the project’s shopping mall and restaurants.

Newmark Group Inc.’s Adam Spies and Doug Harmon are handling the transaction. The brokerage didn’t immediately respond to a request for comment.

Representatives for Wells Fargo, Related and Oxford declined to comment.

The deal, expected to close soon, is one of the largest commercial-property transactions in Manhattan this year.

Many buyers and sellers have been unable to agree on pricing as values decline and borrowing costs rise.

Remote work and cost-cutting by tenants has hurt demand for offices in New York, but companies in the market for space have gravitated toward newer developments, including Hudson Yards.