Related Companies and Oxford Properties Group closed on nearly $1.4 billion in equity investments and debt financing for Hudson Yards.
A consortium of investors and lenders will fund the first tower in the development of Hudson Yards, the South Tower, which will be home to fashion brand Coach, Inc. beauty company, L’Oréal USA, and market software firm SAP.
Select investors are also making equity investments in a residential tower on 30th and 11th Avenue, which will be a hybrid rental and condominium tower.
The South Tower, a 1.7 million square foot commercial tower on the northwest corner of 30th Street and 10th Avenue is already under construction and the residential tower on the northeast corner of 30th Street and 11th Avenue is expected to commence construction in 2014.
Equity investors in the first phase of the Hudson Yards include Coach, Inc., Related, Oxford, institutional investors advised by J.P. Morgan Asset Management, and a prominent sovereign wealth fund.
Construction financing is being provided by a syndicate led by Starwood Property Trust, which includes member organizations of the United Brotherhood of Carpenters and Joiners, along with Oxford Properties Group.
Jeff T. Blau, CEO of Related Companies said, “The show of confidence from this elite group of investors and lenders is a testament to the strength of Related and Oxford and the compelling development we are creating at Hudson Yards. Together we are not just investing in buildings, but in the future of New York.
“Our diverse roster of global tenants, state-of-the-art infrastructure, grand public spaces and signature residential, retail and cultural amenities make Hudson Yards not only the new heart of New York but ensure it will be a vibrant destination day and night.”
Boyd Fellows, president and director of Starwood Property Trust said he looked forward to watching the project progress over the next several years.
And Douglas McCarron, general president of the United Brotherhood of Carpenters and Joiners said, “Our commitment to the Hudson Yards development is a win-win. Not only are we investing in a historic development which will redefine New York, but the 26-acre Hudson Yards project will be the largest private sector creator of union construction jobs, creating over 3,700 jobs for our members.”
The development of the Hudson Yards is the largest private development ever undertaken in New York City. Its construction is expected to create nearly 23,000 construction jobs, and once completed, 40,000 people will work in, or call Hudson Yards their home.