NEW YORK – Related Companies, Oxford Properties Group and Mitsui Fudosan America, Inc. have closed $3.8 billion in financing for 50 Hudson Yards, the development’s park-front, flagship office tower. It’s not expected to open until 2022.
Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui Banking Corporation served as Co-Lead Arrangers for the $1.5 billion senior construction loan. Related, Oxford and Mitsui Fudosan committed the balance of capital required for the development. The capitalization of 50 Hudson Yards represents the full capitalization for the first phase of development at Hudson Yards, which now exceeds $18 billion, including the landmark recapitalization of 10 Hudson Yards last year. 50 Hudson Yards, a 2.9 million square-foot commercial tower anchored by BlackRock.
Related, Mitsui and Oxford also partnered on 55 Hudson Yards tower, which will open in 2018 and be home to Boies, Schiller & Flexner; Cooley LLP; Intercept Pharmaceuticals; Milbank, Tweed, Hadley & McCloy LLP; MarketAxess; Point72; Third Point; and Silver Lake.
Jeff Blau, CEO of Related Companies said, “This transaction represents the final piece of financing for the entire eastern rail yards, which now totals over $18 billion in capital from marquee investment partners, and the full capitalization of 50 Hudson Yards, a visionary building for visionary companies. Designed by one of the most celebrated architects in the world, the park-front building offers large, light-filled floorplates, unparalleled amenities and direct connections to the subway and diverse retail, dining and entertainment experiences. This compelling combination of design, innovation and conveniences will reset expectation for the workplace of the future and makes the building an ideal fit for forward thinking global companies and their leadership. The pace of commercial leasing at Hudson Yards has been nothing short of unprecedented, and with all of the commercial space in the neighboring office towers effectively spoken for, we are excited to introduce 50 Hudson Yards to the marketplace.”
Commented John E. Westerfield, CEO of Mitsui Fudosan America, “We are delighted to partner with Related and Oxford on the development of another best in class office building in Hudson Yards. Our confidence in Related and the whole Hudson Yards project has been strongly confirmed by the outstanding leasing results we have achieved at 55 Hudson Yards. We very much look forward to the development of 50 Hudson Yards into one of the most modern and technologically advanced work places in New York City.”
Blake Hutcheson, Oxford Properties President and CEO said, “Fully capitalizing 50 Hudson Yards is an achievement that speaks volumes about the success of the project and the strength of our partnership. Much has been anticipated at Hudson Yards, and much has been delivered. We are honored that so many of the world’s great companies continue to choose Hudson Yards, and along with Related we are absolutely committed to delivering New York’s most innovative and desirable neighborhood.”
Designed by architecture firm Foster + Partners, the 2.9 million square-foot building will be New York City’s fourth largest commercial office tower and home to BlackRock, the world’s leader in investment management. The LEED Gold-designed, 58-story building has access points on all four sides and the subway concourse below, offering convenient entry points for employees, and an opportunity for each tenant to create a distinct identity. Spanning an entire city block and standing 985 feet tall, the building will offer its marquee tenants private sky lobbies, outdoor terraces, and executive valet parking and drop off in a private porte-cochère. Employees will also benefit from on-site bike storage and concierge services; connections to The Shops & Restaurants at Hudson Yards and the outdoor observation deck located at the top of 30 Hudson Yards; and a direct connection to the No. 7 Subway, allowing for an easy commute from Grand Central. Site work has commenced with vertical construction scheduled to begin this fall. The building is expected to be completed in 2022.