Related, Oxford close on $5B Hudson Yards funding
Mix of bank loans, EB-5 funds and equity will finance mall and office tower
Related Companies and Oxford Properties Group secured $5 billion in construction funding for a 90-story office tower and connected mall at Hudson Yards. The announcement marks a major step towards completion of the megadevelopment on the far West Side.
The financing package includes a $1.5 billion loan from a syndicate of foreign banks for the mall and $690 million loan from a syndicate led by Bank of America and Wells Fargo for the office tower, 30 Hudson Yards. The remainder of the funds is equity from the EB-5 visa program and from office condo sales to investment firm KKR, Time Warner and Wells Fargo Securities. Wells Fargo agreed to occupy 500,000 square feet at the 90-story tower. KKR and Time Warner will occupy 334,000 and 1.5 million square feet, respectively, as previously reported.
Designed by Kohn Pedersen Fox, 30 Hudson Yards will rise 1,255 feet, the tallest building in the development.
The 1-million-square-foot mall will be anchored by Neiman Marcus, with more than 100 other retailers and restaurants.
“We took every conference room in the law firm,” Related’s CEO Jeff Blau said of the deals, which all closed Friday.
Work on the mall and the tower, as well as four other buildings at the site, is already underway. Related has projected work on 30 Hudson Yards to be completed in 2019.
Last month, Related and Oxford announced that they had secured $1.3 billion in funding for a residential tower. [WSJ] – Konrad Putzier