Related just finalized a massive construction loan for 50 Hudson Yards

Developer and its partners have raised more than $18B for project
September 05, 2017 09:04AM

Jeff Blau and 50 Hudson Yards (Credit: Foster + Partners)

Related Companies has closed on a $1.5 billion senior construction loan for 50 Hudson Yards, meaning that the company and its partners have raised more than $18 billion for the first phase of the entire Hudson Yards development.

The loan, one of the largest of the cycle, was provided by a consortium of banks, including Bank of China, Deutsche Bank, Wells Fargo, HSBC and Sumitomo Mitsui Banking Corporation, the Wall Street Journal reported. Related and its partners, Oxford Properties Group and Mitsui Fudosan America, are providing the remaining financing for the office tower.

The Real Deal first reported that Related was in advanced talks for a $2.5 billion financing package from the banks. At the time, it appeared that the financing included a roughly $700 million equity injection and a $1.8 billion senior loan from the syndicate of banks. Mitsui Fudosan announced last week that it had taken a 90 percent equity stake in the office tower, which is expected to cost around $4 billion, the most expensive in city history.

BlackRock is slated to be the building’s anchor tenant, having agreed to take 850,000 square feet across 15 floors of the 2.9-million-square-foot building. The building is expected to be completed in 2022. [WSJ] — Kathryn Brenzel