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New York

Silverstein to sell $1.6B of tax-exempt bonds for 3 WTC

Developer of 80-story tower looks to capitalize on uptick in municipal debt market

Larry Silverstein and a rendering of 3 World Trade Center
Larry Silverstein and a rendering of 3 World Trade Center

Developer Larry Silverstein’s Silverstein Properties plans to sell $1.6 billion of tax-exempt bonds as soon as next week, in an effort to finance the 3 World Trade Center project.

Silverstein said he hopes an uptick in the municipal bond market makes for a successful sale. The developer has struggled to find investors for the 1,170-foot-tall, 2.5 million-square-foot tower. The property is only 20 percent leased, thus amplifying the risk for potential bondholders.

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In December, advertising and media company GroupM signed a 20-year lease for 516,000 square feet, as previously reported. The bonds would be between 5 and 6 percent – a higher rate but below a typical lenders’ charge for construction debt, according to the Wall Street Journal. [WSJ] — Mark Maurer

Correction: The original version incorrectly stated that Silverstein planned to sell $1.6 million of tax-exempt bonds. 

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Larry SilversteinSilverstein Properties