Boston Properties lends $80M on 3 Hudson Boulevard project

REIT entered into JV with Joe Moinain to develop 2M sf tower

New York /
Aug.August 01, 2018 01:00 PM

Boston Properties’ Owen Thomas and 3 Hudson Boulevard (Credit: REIT and FXFOWLE via Curbed NY)

Boston Properties is both lender and developer on the Hudson Yards office tower it’s co-developing with Joseph Moinian.

The real estate investment trust provided $80 million in debt to refinance a land loan at 3 Hudson Boulevard as part of its joint-venture with the Moinian Group, company executives said on Boston Properties’ earnings call Wednesday morning. Property records show that it replaces a mortgage of the same amount from American General Life Insurance Company.

Boston Properties last month announced it had purchased a minority interest in the Moinian Group’s 2 million-square-foot development project.

Company CEO Owen Thomas said on the earnings call that the REIT paid $46 million at closing to purchase a 25 percent stake in the development site, with a commitment to fund an additional $62 million if needed.

The developers still have to purchase air rights for the planned tower. In all, Boston Properties agreed to invest $500 million in the project.

Boston Properties executives calculate that their investment values the development at $360 per buildable square foot.

The project is the last Hudson Yards tower along West 34th Street looking for an anchor tenant. But Boston Properties president Doug Linde said that, given how late it is in the cycle, the company won’t reach to do a risky deal to land a tenant.

“As we move on in the cycle we, have toned down our risk tolerance for speculative space,” he said.

Thomas acknowledged that “it’s a thin market” to find the kind of significantly sized anchor tenant that they’re looking for, but added that “the good news is there are not that many options for such a tenant.”

Boston Properties expects it will take 36 to 40 months from the time they kick off vertical construction to when a tenant can move in. JLL’s Aaron Appel arranged Boston Properties’ $80 million loan on the project.

The company also gave an update on their long-stalled plan to redevelop the Metropolitan Transportation Authority’s headquarters at 343 Madison Avenue.

The project is still in the entitlements phase and needs to go through the city’s land-use process. But Boston Properties is now looking for a development partner.


Related Articles

arrow_forward_ios
 SL Green’s Marc Holliday with 450 Park Avenue  (Taconic Partners, SL Green)
TRD Pro: Here are NYC’s biggest offices sales of Q2
TRD Pro: Here are NYC’s biggest offices sales of Q2
From left: Jeff Goldberg, CEO of Fairstead, and Will Blodgett, Founder of Tredway (Getty Images, Fairstead)
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
From left: Extell's Gary Barnett and JDS Development’s Michael Stern along with One Manhattan Square, The Narrows, and 111 West 57th Street (Extell, JDS Development, Getty Images, The Narrows Condo)
New development sales plummeted 30% in July
New development sales plummeted 30% in July
Queens official Donovan Richards, Larry Silverstein and rendering of Innovation QNS (Queens Borough President, Innovation QNS, Getty)
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Tavros Capital’s Nicholas Silvers and Charney Companies’ Sam Charney in front of 24-05 thru 24-19 Jackson Avenue in Long Island City (Getty Images, Tavros Capital, Charney Companies, Google Maps)
Tavros, Charney plan 55-story rental on long-stalled site
Tavros, Charney plan 55-story rental on long-stalled site
3100-3124 Atlantic Avenue in East New York, Brooklyn (Google Maps, Getty)
Locals fear homeless shelter king will gentrify East New York
Locals fear homeless shelter king will gentrify East New York
SpringHealth CEO April Koh, 60 Madison Avenue and Moinian Group’s Joseph Moinian (SpringHealth, VTS, Moinian)
Youngest female unicorn CEO moves startup to Moinian’s 60 Madison Avenue
Youngest female unicorn CEO moves startup to Moinian’s 60 Madison Avenue
Adam Piore with the Time Warner Center, 15 Central Park West, One57, Sheffield57, and Hudson Yards (Getty, CityRealty, Pablo Costa Tirado, CC BY-SA 3.0 via Wikimedia Commons)
“New Kings of New York” author on 5 projects that reshaped NYC real estate
“New Kings of New York” author on 5 projects that reshaped NYC real estate
arrow_forward_ios

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

Loading...