Related lands $349M for 50 Hudson Yards
Office among most expensive office projects in city history
One of the most expensive office projects in New York City history picked up a bit more financial support.
Wells Fargo provided a $348.8 million rehab construction loan to Related Companies and Oxford Properties Group for its development at 50 Hudson Yards, PincusCo reported. The deal closed last month and is considered additional construction debt.
The project’s all-in price tag of about $4 billion makes the development one of the most expensive office projects in city history. The price tag on the Foster + Partners-designed building is $1,407 per square foot, trumping the $1,230 per square foot cost of Tishman Speyer’s “Spiral” across the street.
In 2017, the first phase of the development marked more than $18 billion raised after Related closed on a $1.5 billion senior construction loan for the project. A consortium of banks provided the financing, Bank of China, Deutsche Bank, Wells Fargo, HSBC and Sumitomo Mitsui Banking Corporation. Oxford and another Related partner, Mitsui Fudosan America, agreed to provide the remaining financing.
The senior construction loan was less than Related wanted. Stephen Ross’ firm was in advanced talks for a $2.5 billion financing package, which would’ve included a roughly $700 million equity injection and $1.8 billion senior loan. Parameters shifted when Mitsui Fudosan took a 90 percent equity stake.
The record holder for the most expensive building is One World Trade Center, which cost roughly $3.8 billion to build.
Tenants at the 2.8 million-square-foot, 58-story tower include BlackRock and Meta, which recently terminated its lease at 225 Park Avenue South to focus on its space at Hudson Yards and the Farley Post Office.
Last month, Charlotte-based bank Truist Financial leased 100,000 square feet at 50 Hudson Yards, agreeing to relocate from Shvo’s 711 Fifth Avenue, the former Coca-Cola building.
Vista Equity Partners in July signed a 95,000-square-foot lease, which cost between $175 and $240 per square foot. Software company ServiceNow recently expanded its footprint up to 50,000 square feet.
The building is expected to be completed this year.
— Holden Walter-Warner