Tishman Speyer Seeks to Refi the Spiral With $2.7B Bond Sale

Tishman Speyer is hitting the bond market to refinance its Hudson Yards office tower.

Tishman and Henry Crown are in the midst of a $2.65 billion bond sale to refinance the property at 66 Hudson Boulevard, Bloomberg reported. The bond sale is expected to conclude by the end of the week, which would make it the first major single-asset, single-borrower bond sale tied to commercial mortgage-backed securities this year.

Proceeds from the bond sale will refinance existing debt — including a $1.37 billion construction loan and $216 million tied to EB-5 investors — go towards tenant reserves and return equity to the sponsor. An additional $200 million in debt is expected to be securitized in future deals.

The Tishman Speyer property is proving to be a popular pick for tenants looking to find a home in a trophy office building. In October, private equity giant TPG agreed to take 301,000 square feet across eight floors, one of the largest office leases in Manhattan that month.

The building opened in 2023 and counts tenants such as HSBC’s US headquarters, Pfizer (the anchor tenant), Debevoise & Plimpton LLP, AllianceBernstein, Turner Construction and Marshall Wace. Upon the TPG deal, occupancy at the 2.8 million-square-foot Spiral building hit 94 percent.

Architecture shop Bjarke Ingles Group designed the 1,000-foot-tall glass-facade office tower, which opened shortly after the pandemic decimated office leasing activity. Tishman spent $438 million to acquire the necessary parcels for the development in 2014, though it didn’t manage to snag the requisite air rights needed until four years later.

Around the time of the TPG lease, Tishman negotiated a $3.5 billion refinancing of Rockefeller Center, a record for a single office asset.

And in August, Tishman scored a $301 million refinancing deal for its project at the historic Macy’s building in Downtown Brooklyn, landing the package from Starwood Property Trust.

— Holden Walter-Warner