The Real Deal New York

Tishman Speyer hunting for massive construction loan at the Spiral: sources

$1.5B mortgage would finance Hudson Yards office project
By Konrad Putzier | December 14, 2017 03:00PM

Rob Speyer and and rendering of The Spiral (Credit Getty Images and Credit: BIG/Tishman Speyer)

Tishman Speyer is in the market for a $1.5 billion construction loan to finance its Spiral office development in the Hudson Yards neighborhood, sources told The Real Deal.

The mortgage would be one of the biggest construction loans of the market cycle, on a level with SL Green’s $1.5 billion loan to fund One Vanderbilt and the $1.5 billion loan to fund Related Companies and partners’ 50 Hudson Yards.

Tishman Speyer has spoken to banks about the financing, but no deal appears imminent. The developer, who declined to comment for this story, hopes to close on a mortgage in the first quarter of 2018, one source said.

In October, Tishman Speyer paid $157 million for 669,000 square feet of air rights. The developer plans to build a 65-story, 1,005-foot-tall office tower spanning more than 2.8 million square feet at 509 West 34th Street.

The Bjarke Ingels-designed development is expected to cost $3.2 billion.

Pfizer agreed in August to take 800,000 square feet and become the building’s anchor tenant. The pharmaceutical giant plans to move in by late 2022.

Moinian Group is seeking a $3 billion debt-and-equity package for its competing Hudson Yards office project 3 Hudson Boulevard, which would include about $1.8 billion in debt.