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
L&L Holding’s David Levinson and Columbia Property Trust's Nelson Mills with a rendering of 261 11th Avenue (L&L, Columbia Property Trust, Terminal Warehouse)
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
Towns and cities have begun restricting housing construction to save their supply of H2O. (iStock)
“Why are we building houses if we don’t have enough water?”: Towns react to scarcity
“Why are we building houses if we don’t have enough water?”: Towns react to scarcity
(iStock)
Locals: Put housing, not warehouses, on landfill site
Locals: Put housing, not warehouses, on landfill site
Fires raging in the western United States are beginning to have a negative impact on lumber output. (Getty)
Raging wildfires threaten lumber market, home builders’ costs
Raging wildfires threaten lumber market, home builders’ costs
A rendering of 19 Hausman Street (M Development)
Nightmare darkens for largest Brooklyn condo project of 2019
Nightmare darkens for largest Brooklyn condo project of 2019
From left: a rendering of 286 Rider Avenue, Ben Harlev and Heritage Equity Partners' Toby Moskovits (Fischer Makooi Architect, Moskovits via Sasha Maslov, Ben Harlev via NadlanCityNY)
Lender tries to seize Toby Moskovits’ Bronx apartment project
Lender tries to seize Toby Moskovits’ Bronx apartment project
A rendering of 45 Park Place and Sharif El Gamal (SOMA, Getty)
45 Park Place mired in involuntary bankruptcy, foreclosure proceedings
45 Park Place mired in involuntary bankruptcy, foreclosure proceedings
Werwaiss Properties files plans for 240-unit building in LIC
Werwaiss Properties plans 37-story mixed-use tower in LIC
Werwaiss Properties plans 37-story mixed-use tower in LIC
arrow_forward_ios

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

Loading...