Tishman Speyer’s $450M CMBS Refi of The Jacx in LIC Used Green Bond Offering
The financing, which was originated by Bank of America, closed on Aug. 20.
Tishman Speyer’s $450 million CMBS refinance of its 1.2 million-square-foot creative office development, The Jacx, in Long Island City, Queens that closed in late August was facilitated using a green bond offering originated by Bank of America, Commercial Observer has learned.
The global development firm was able to secure the 100-percent green financing to retire existing construction debt on the back of The Jacx meeting a variety of standards for energy efficiency and sustainability.
Bank of America tapped Sustainalytics, an independent ESG (environmental, social and governance) analytics firm that is part of Morningstar, to analyze and evaluate the property’s fitness for the green bond offering under the requirements of the 2021 edition of the Green Bond Principles, a voluntary set of guidelines for sustainability and energy efficiency.
The Jacx benefitted from its LEED-Silver designation and the variety of systems Tishman has deployed at the property — including its landscaped public plaza area, a 100,000-gallon storm water reclamation and filtration system, a two-stage, indoor air filtration system, energy-efficient boilers, a 175-slot bicycle parking area with showers and low-flow water fixtures. The fact that the property’s location at 28-17 Jackson Avenue in the heart of LIC allows for ample access to public transportation was another factor that contributed to it being able to nab the green bond financing.
“Tishman Speyer is dedicated to producing sustainable environments that add significant value to our customers and investors, as well as the residents of the communities in which they are located,” Tishman Speyer Senior Managing Director and Global Head of Debt Randall Rothschild said. “There is a growing appetite among pension funds and other institutional investors for projects that embrace and incorporate ESG principles. The high level of interest in The Jacx among the world’s top social impact investors is a validation of our efforts to produce a positive and lasting impact in Long Island City.”
The property, designed by MdeAS Architects, is a mixed-use, creative office and retail asset that includes two 26-story towers that sit atop a five-story base. The base connects the towers and includes a one-acre, landscape outdoor terrace on the fifth floor. The Jacx was built in 2019 and is currently 100 percent leased, with Macy’s being the largest holder of space. WeWork (WE), the NewYork-Presbyterian Hospital and Bloomingdale’s are also tenants.
The Jacx has more than 50,000 square feet of retail space headlined by a food hall, Jacx & Co. There is also a restaurant from chef Dan Kluger called Penny Bridge, a fitness center called The Wright Fit and grocery outlet City Acres.
Mack Burke can be reached at firstname.lastname@example.org.