Cove Property Group has closed on $724.2 million financing for Hudson Commons, its trophy Hudson yards office development.
Eastdil Secured and Cole Schotz P.C. represented the developer in securing the loans from affiliates of Blackstone Mortgage Trust.
Cove, in partnership with The Baupost Group, purchased the property from Emblem Health in December 2016.
Over the past two years, the partners pursued an ambitious and creative adaptive reuse of the original eight-story former warehouse, combining it with a new 17-story overbuild.
The now 25-story, 698,000 s/f tower at 441 Ninth Avenue is now anchored by fitness giant Peloton, which has a 336,000 s/f headquarters there.
Ride sharing service Lyft also has 100,000 s/f and investment manager, Brevet, occupies 16,000 s/f.
Only 213,000 s/f of office space remains available across the newly constructed boutique tower floors, ranging from 16,000 to 23,000 s/f.
Still up for grabs is the penthouse, which has a 28-foot slab height, panoramic views of the city and a private rooftop garden.
“From day one, we held true to our business plan of preserving a remarkable industrial building, while adding to it an integrated, efficient tower and thereby creating a best-in-class work environment that fosters collaboration, innovation and growth, all at the gateway to Manhattan’s newest center of business,” said Kevin Hoo, founder and managing partner at Cove.
“Cove and Baupost are extremely proud of the finished product, which we recently launched to market, and we look to welcome new tenants into the remaining tower floors.
“We are pleased that Blackstone appreciates the execution of our vision, and we are excited to be partners with them in this next chapter of Hudson Commons.”
Steve Plavin, president and CEO of Blackstone Mortgage Trust, said, “We are thrilled to provide senior mortgage financing on Hudson Commons, an outstanding property in Manhattan’s best performing submarket.
“This transaction exemplifies BXMT’s differentiated ability to finance large scale, high quality real estate with strong sponsorship in core locations.”
Katie Keenan, Executive Vice President, Investments at Blackstone Mortgage Trust added, “With its sweeping views, hospitality-quality amenities and modern design features, Hudson Commons brings a unique appeal for creative and boutique office users. Cove and Baupost achieved top-notch execution on a complicated project, and we are excited to be financing this wonderful property.”
Designed by Kohn Pedersen Fox, Hudson Commons features efficient side-core floor plates with light and air on all sides, minimum 14 ft. slab heights, outdoor space on nearly every floor and state-of-the-art amenities and technology.
Tenants can access a dedicated building concierge, manage amenity conference room reservations, submit service requests and control visitor access management, all from a new app-based platform. The Wired Score Platinum property also features executive parking, bike storage, showers and a hospitality-driven 8,000 s/f conferencing center and tenant lounge.
Hudson Commons is tracking to earn LEED Platinum designation.
The Eastdil Secured team led by Grant Frankel, managing director; Phil McKnight, managing director; and Ethan Pond, director, represented Cove in securing the financing from affiliates of Blackstone Mortgage Trust.
Cole Schotz P.C. represented Cove in negotiation of the construction and mezzanine loans from Parlex 1 Finance, LLC, Parlex 2A Finco, LLC and Parlex 3A Finco, LLC, affiliates of Blackstone Mortgage Trust, which refinanced the existing loans with Apollo Global Management and JPMorgan Chase.
The Cole Schotz team included members Leo Leyva, Jordan J. Metzger and W. John Park, with support from associates Samantha B. Epstein, Danielle M. Pasquariello, Robyn A. Pellegrino and Cristina M. Riggio.