Oxford Properties, CPPIB Seal $973M Construction Loan for St. John’s Terminal
Deal flow may have slowed significantly since the COVID-19 pandemic set in, but some of New York City’s biggest loans on its most highly anticipated projects continue to close.
Oxford Properties and the Canadian Pension Plan Investment Board sealed the $972.6 million construction financing for their redevelopment of St. John’s Terminal this afternoon, sources told Commercial Observer.
As previously reported by CO, Wells Fargo is leading the deal, with TD Bank and J.P. Morgan also participating along with four other syndicate banks.
“Wells Fargo is proud to be the lead lender on this significant construction deal to help Oxford Properties Group and the Canadian Pension Plan Investment Board bring St. John’s Terminal — and its sole tenant Google — to life in New York,” Bill Vernon, Head of Real Estate Banking for Wells Fargo Commercial Real Estate, told CO.
CBRE Vice Chairmen James Millon and Tom Traynor, along with P.J. Finley, negotiated the debt and arranged the syndicate. CBRE officials declined to comment.
In January, CO reported that the two developers were seeking a $975 million construction loan for the mega-project, with every major bank “fighting to get a piece” of the debt opportunity.
The property — which sits between Houston and West Streets next to Hudson River Park’s Pier 40 — was originally built as the southern terminal for the High Line elevated railway and was constructed to hold up to 227 railcars.
Atlas Capital Group and Westbrook Partners sold the southern portion of the sprawling industrial complex to Oxford and CPPIB for $700 million in January 2018. They’ve since reimagined the asset as a 1.3-million-square-foot workplace that blends the site’s heritage with state-of-the-art finishing touches. COOKFOX Architects is leading its redesign.
Adding to the property’s allure, Google is St. John’s Terminal’s sole tenant, having selected the asset — at 550 Washington Street — as part of its Google Hudson Square Campus in 2018. The internet powerhouse plans on moving into its new digs in 2022.
Wells Fargo closed another significant debt deal in late March — the $510 million refinance of Silverstein Properties and UBS Realty Investors’ 120 Broadway.
Officials at Oxford Properties declined to comment. Officials at CPPIB could not immediately be reached for comment.