Related Companies, Oxford Properties Group and Mitsui Fudosan America have secured a $1.5 billion construction loan for 50 Hudson Yards, bringing the total financing for the 58-story office tower to $3.8 billion.
The tower, located at the corner of 33rd Street and 10th Avenue, will be the fourth largest commercial building in New York City. Scheduled to open in 2022, it will occupy a full city block and stand 985 feet tall.
The latest finance deal closes the total financing for the first phase of the 28-acre megaproject at over $18 billion. Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui Banking Corporation served as co-lead arrangers for the construction loan.
According to a 2016 report from consulting firm AppleSeed, the first phase of the development, also known as the Eastern Rail Yard, includes office buildings 55 Hudson Yards, 30 Hudson Yards and 10 Hudson Yards, residential tower 35 Hudson Yards, retail center The Shops and the Restaurants at Hudson Yards and cultural arts venue The Shed.
The second phase of the project, also known as the Western Rail Yard, covers the 11th to 12th Avenue between West 30th and West 33rd Street. That portion of the project — scheduled for completion in 2025 —will create two million square feet of office space, four million square of residential space, 100,000 square feet of retail and a school for kindergarten to eighth grade students.
The latest finance package represents the final piece of financing for the entire eastern rail yards and the full capitalization of 50 Hudson Yards, said Related Companies CEO Jeff Blau.
Blau added, “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.”
“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,” added Blake Hutcheson, Oxford Properties’ President and CEO.
According to a Reuters report from last week, Mitsui Fudosan now holds a 90 percent stake in 50 Hudson Yards. The investment represents the firm’s largest for a single property overseas.
Asset manager Blackrock is the anchor tenant for the property. The firm, which has two offices in New York City, signed an 847,000 s/f lease. It will pay a total of $1.25 billion over 20 years, according to a Reuters report. The firm’s lease starts on May 1, 2023.
So far, commercial tenants have taken 6.4 million s/f of space in Hudson Yards. 10 Hudson Yards, which opened last year, is now home to fashion brand Coach, cosmetics firm L’Oreal USA, advertising agency VaynerMedia and Boston Consulting Group. Meanwhile, Time Warner, Wells Fargo Securities and DNB Bank have signed leases at 30 Hudson Yards.