The Real Deal New York

Moinian targets $3B in debt, equity for
3 Hudson Boulevard

Developer to begin search early next year for massive financing package: sources
By Mark Maurer | Twitter_logo_blue copy November 27, 2017 07:00AM

Joe Moinian and a rendering of 3 Hudson Boulevard (Credit: FXFOWLE)

In what would be one of the largest New York City debt-equity deals of this market cycle, the Moinian Group is on the hunt for a $3 billion debt-and-equity package to make its Hudson Yards tower 3 Hudson Boulevard a reality.

Moinian recently hired JLL to lead the search for a massive financing package, which is expected to consist of roughly $1.8 billion in debt and $1.2 billion in equity, sources told The Real Deal.

The developer, which broke ground earlier this month on the 53-story, 2 million-square-foot office tower, has not locked in an anchor tenant.

A JLL team led by Aaron Appel, Kellogg Gaines and Jonathan Schwartz was tapped to search for the $3 billion package. Moinian is expected to officially be in the market for the package early next year, sources said.

For the tenant search, Moinian also recruited JLL to replace Avison Young, which has been handling the leasing effort the past few years. The tower, located at West 34th Street and 11th Avenue, is expected to be complete by 2021.

Representatives for JLL declined to comment, and Moinian did not immediately respond.

While Joseph Moinian said at the groundbreaking ceremony he wants as much as $500 million in EB-5 funding, sources said EB-5 funding may prove to be unnecessary, and not ultimately factor into the capital stack.

If Moinian does pull off a financing package of that size, he would join a small group of developers to secure several billion dollars in the tight lending environment for construction projects. Related Companies and partners closed on a $3.8 billion package for 50 Hudson Yards in September  and GID Development Group locked in $2.4 billion in financing for the three-building Waterline Square project on the Upper West Side late last year.