Hudson Yards’ developers have finalized one of the biggest real estate financing deals since the 2008 financial collapse. They will receive $5 billion to construct 30 Hudson Yards and an adjoining one million square-foot mall.
On Friday, December 11, the Wall Street Journal reported that Related Cos. and Oxford Properties Group had reached an agreement with several lenders.
There are a few aspects to the deal. A group led by Bank of America and Wells Fargo provided a $690 million construction loan for the office tower. Meanwhile, foreign banks, led Deutsche Bank, Credit Agricole, and two Chinese banks, loaned the developers $1.5 billion for the mall.
When it opens, the mall will be anchored by New York City’s first-ever Nieman Marcus.
The developers also announced that they’d raised $2.2 billion in equity, much of it from three prospective tenants of the 80-story office tower: Wells Fargo; Time Warner; and KKR Investments.
According to CoStar.com, Wells Fargo “will build out two trading floors of more than 75,000 square feet each, with the bank’s securities, capital markets and investment banking division occupying seven floors.”
Meanwhile, Time Warner has purchased 1.3 million square feet. It will move its corporate headquarters and broadcast studio space from Columbus Circle into the tower.
CoStar reports that the tower is now fully committed.
“These transactions represent an inflection point for Hudson Yards and the continued transformation of the West Side,” Related CEO Jeff Blau told Crain’s.
The tallest building in the entire development, 30 Hudson Yards is scheduled to open in 2019. It will include a large observation deck.