$1.8B bond sale for 3 World Trade Center approved

Debt to be secured by building mortgage, tenant leases and rents

New York /
Oct.October 06, 2014 03:10 PM

The sale of $1.8 billion in bonds for 3 World Trade Center has been approved, following a year-long delay after the Port Authority of New York & New Jersey hesitated to guarantee the debt.

Developer Larry Silverstein is issuing the tax-exempt bonds through New York’s Liberty Development Corp., a subsidiary of New York state’s economic development agency, and Goldman Sachs Group will manage the sale, Bloomberg News reported.

Bonds for the tower are to be issued in three classes, and will be secured by a mortgage on the building, tenant leases and rents. Development of the structure will also be financed by $55 million of equity from Silverstein, $210 million from the Port Authority of New York & New Jersey and additional contributions from the state and city.

A spokesperson for Silverstein did not tell Bloomberg when the bonds would be issued.

The Port Authority voted to release roughly $159 million of insurance money paid by insurers following the destruction of the original World Trade Center complex in June. The agreement allowed Silverstein to immediately tap $50 million of the total proceeds, while the remainder were held in a reserve fund. [Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
Port Authority Inks Deal to Bring $145M Cargo Hub to JFK (iStock)
Port Authority inks deal to bring $145M cargo hub to JFK
Port Authority inks deal to bring $145M cargo hub to JFK
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
Larry Silverstein and The Denizen in Brooklyn above; and Scott Rechler with 555TEN in Hudson Yards top right. (Getty)
The art of the (discounted) deal
The art of the (discounted) deal
Silverstein Properties’ Larry Silverstein and Brookfield’s Brian Kingston (Getty/Illustration by Kevin Rebong for The Real Deal)
Port Authority taps Silverstein, Brookfield to build 5WTC
Port Authority taps Silverstein, Brookfield to build 5WTC
Douglas Durst of the Durst Organization, Port Authority Executive Director Rick Cotton, and Conde Nast CEO Roger Lynch. (Getty)
Condé Nast isn’t paying rent at 1WTC amid lease dispute
Condé Nast isn’t paying rent at 1WTC amid lease dispute
The bus terminal was built in the 1950s and designed to serve one fourth of the riders it sees today. (Getty)
Port Authority to raze, replace “hell on earth” bus terminal
Port Authority to raze, replace “hell on earth” bus terminal
TRD's Erik Enguist and Port Authority's Rick Cotton
Port Authority, out $3B, has waterfront land to sell
Port Authority, out $3B, has waterfront land to sell
TRD's Erik Enguist and Port Authority's Rick Cotton
Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday
Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...