Related Closes $4B Financing for 50 Hudson Yards
By Mack Burke September 5, 2017 1:50 pmreprints
Related Companies, Oxford Properties Group and Mitsui Fudosan America have closed on $3.8 billion in financing—including a $1.5 billion senior construction loan—for 50 Hudson Yards, according to a news release detailing the transaction and as first reported by the The Wall Street Journal.
This transaction marks the final round of financing for the project’s first phase of development. Thus far, the financing exceeds $18 billion.
Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui Banking Corporation arranged the $1.5 billion senior construction loan, and the development partners provided the remaining equity to complete the transaction.
“This transaction represents the final piece of financing for the entire eastern rail yards, which now totals over $18 billion in capital from marquee investment partners, and the full capitalization of 50 Hudson Yards,” Related Companies Chief Executive Officer Jeff Blau said in prepared remarks.
Blake Hutcheson, president and CEO of Oxford Properties, added: “Fully capitalizing 50 Hudson Yards is an achievement that speaks volumes about the success of the project and the strength of our partnership.”
The Real Deal first reported that the lenders would collaborate on a $2.5 billion financing package for the property, with a roughly $700 million equity injection and a $1.8 billion senior loan.
“We are pleased to again collaborate with Related and Oxford with the financing of 50 Hudson Yards,” said Mark Myers, head of Wells Fargo commercial real estate, in prepared remarks. “The transformation taking place on the west side of Manhattan is phenomenal.”
The roughly 2.9-million-square-foot tower was designed by architecture firm Foster + Partners, and will be anchored by global investment management firm BlackRock, which has pledged to take 850,000 square feet across 15 floors, Commercial Observer reported last December.
The 985-foot tall, 58-story building—expected to be completed in 2022—is set to become the fourth-largest commercial office tower in New York City.
The building will feature private sky lobbies, outdoor terraces as well as executive valet parking and drop-off service in a private porte-cochère for its marquee tenants.