Related, Oxford Close Financing for Hudson Yards Tower
- Nov 25, 2015
While the office skyscrapers planned for the $20 billion Hudson Yards mixed-use development on Manhattan’s West Side have garnered headlines about new tenants and investors, the first residential tower at the 28-acre site has some big news of its own – developers Related Cos. and Oxford Properties Group have secured more than $1 billion in financing secured for its construction.
The developers announced this week they have closed on $1.3 billion in financing to fund 15 Hudson Yards, the 70-story, 910-foot tall tower that will have 285 for-sale residences and 106 rental units. The 960,000-square-foot building will be complete in 2018. Sales are expected to start in mid-2016.
Fifteen Hudson Yards, designed by Diller Scofidio + Renfro and Rockwell Group, will have a tapered design that will offer residents unobstructed views of the Hudson River and New York City. The LEED Gold-designed building will front on a new plaza and be adjacent to the High Line. It will also be connected to the Culture Shed, a seven-level, multi-purpose cultural space.
Related and Oxford, both private companies, and a sovereign wealth fund have provided equity for construction of the tower and debt was provided by London’s Children’s Investment Fund in the form of a $850 million loan and tax-exempt bonds from New York State.
“Hudson Yards is transforming the west side of Manhattan and this latest transaction represents a continued show of confidence from elite investors and lenders,” Jeff Blau, Related CEO, said in a prepared statement. “We have already attracted business leaders in finance, fashion, beauty, consulting, law, tech and media to Hudson Yards; and in just a few short years we will welcome our first residents to the new neighborhood.”
Blake Hutcheson, Oxford Properties CEO, noted that the project was more than buildings.
“Since day one we envisioned a rich community where people can work live and play,” he said in a statement. “Today, we take another step towards this objective and we are honored that our financing partners share this vision.”
Hudson Yards, which will have 17 million square feet of commercial and residential space when completed, is considered the largest private development in U.S. history. When the mega-development is built out, it will also have more than 100 shops and restaurants, approximately 5,000 residences, a cultural space, 14 acres of public open space and a public school.
The second residential tower, 35 Hudson Yards, will have 70 stories and include a luxury, 200-room Equinox-branded hotel.
The first office tower, 10 Hudson Yards, is expected to be open early next year. The 1.7 million-square-foot, 52-story building at 30th Street and 10th Avenue will be home to tenants including Coach Inc., L’Oreal USA, SAP and VaynerMedia. Boston Consulting Group, a leading global management consulting firm, recently announced it was taking six floors at 10 Hudson Yards in 2016.
A second office skyscraper, 30 Hudson Yards, has also been attracting big-name tenants, including private equity giant KKR & Co., L. L.P., which said last month it is buying the top 10 floors at the 90-story tower. KKR will join Time Warner Inc., which will own 1.5 million square feet of space in the 2.6 million-square-foot tower expected to open in 2019.
A third office tower, the 50-story 55 Hudson Yards, will be home to the major law firm, Boies, Schiller & Flexner, which signed a lease in June for 83,000 square feet in the building due for completion in 2018. In January, Japanese company Mitsui Fudosan American bought a 90 percent stake in the 1.3 million-square-foot building for a reported $259 million.