Tishman Locks Down Pfizer as Anchor, $1.8B in Financing at The Spiral
Tishman Speyer has locked down a major tenant and $1.8 billion in construction financing from Blackstone Mortgage Trust for its new Hudson Yards skyscraper.
Pfizer, the biopharmaceutical company, has signed an 800,000-square-foot lease at Tishman Speyer’s planned 65-story office building at 66 Hudson Boulevard, known as The Spiral.
The tenant plans to relocate its global headquarters from 219 and 235 East 42nd Street to the Hudson Yards District building where it will occupy 15 floors—the entire seventh through 21st floors, according to a release from the developer today. Pfizer will also occupy portions of the ground and mezzanine levels. The deal is for 20 years. The asking rent wasn’t immediately clear. In addition, Pfizer is selling the two buildings it currently occupies at 219 and 235 East 42nd Street, according to Cushman & Wakefield.
“Tishman Speyer is thrilled to welcome Pfizer as the anchor tenant in The Spiral, the world’s most connected and collaborative office environment,” Rob Speyer, Tishman Speyer’s president and CEO, said in prepared remarks. “With its iconic design, amazing views and abundant access to outdoor amenity spaces, The Spiral will serve as a major leap forward in the evolution of the modern workplace.”
Construction of the 2.8-million-square-foot tower will begin in June, and is expected to be completed in 2022. Pfizer will take occupancy upon the building’s completion, according to the release.
The Spiral, designed by Bjarke Ingels Group, will stretch 1,031 feet tall and features a series of outdoor terraces that cascade around the tower. The building covers an entire block from West 34th to West 35th Streets and from 10th Avenue to Hudson Boulevard.
“We are excited that this move will provide our colleagues with a modern, state-of-the-art headquarters that will enable us to continue to fulfill our desire to be the most innovative biopharmaceutical company dedicated to discovering and bringing new therapies to improve the lives of patients around the world,” Albert Bourla, Pfizer’s chief operating officer, said in a statement.
In addition to the construction financing from Blackstone Mortgage Trust (BXMT), the tower will be funded by $1.9 billion in equity from Tishman Speyer and “more than a dozen other institutional, pension fund and individual investors,” according to the news release.
“Our well-protected, low leverage loan has an extremely strong credit profile and is consistent with BXMT’s strategy of lending on institutional quality real estate with strong sponsorship in gateway markets,” Steve Plavin, president and CEO of Blackstone Mortgage Trust, said in a prepared statement. “BXMT’s ability to originate The Spiral financing is a testament to our excellent relationship with Tishman Speyer as well as the strength of the Blackstone platform and unmatched scale of our real estate business.”
Tishman Speyer selected Turner Construction Company as the construction manager of The Spiral. The project will create 7,600 construction jobs and more than 7,100 permanent office, retail and building-service jobs.
C&Ws Josh Kuriloff led a team that represented Pfizer in the transaction. And C&W’s Adam Spies and Douglas Harmon led a team that sold Pfizer’s former headquarters buildings in Midtown to real estate investor David Werner for $360 million, as The Real Deal reported.
“The intricacies of a headquarters relocation and negotiating an anchor tenant lease at a brand new development is highly complex and takes a thoughtful, strategic plan where all disciplines are perfectly aligned” Kuriloff said in prepared remarks. “We are thrilled to see this alignment come together with the world-class developer, Tishman Speyer and Pfizer.”