Hudson Yards reached a milestone Tuesday when the Related Companies, Oxford Properties Group and Mitsui Fudosan America Inc. said the project on Manhattan’s West Side closed on $3.8 billion financing for the flagship tower at 50 Hudson Yards. BlackRock will be the anchor tenant of the Foster + Partners-designed building, which has 2.9 million square feet of gross leasable space.
Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui Banking Corp. were colead arrangers for the $1.5 billion senior construction loan, while Related, Oxford and Mitsui Fudosan committed the balance of capital necessary to complete the tower.
The project’s developers Related and Oxford said the capitalization of 50 Hudson Yards represents the full capitalization for Hudson Yard’s first phase, which exceeds $18 billion, including the recapitalization of 10 Hudson Yards last year.
“The pace of commercial leasing at Hudson Yards has been nothing short of unprecedented, and with all of the commercial space in the neighboring office towers effectively spoken for, we’re excited to introduce 50 Hudson Yards to the marketplace,” said Jeff Blau, chief executive officer of Related Companies, adding that the tower is one of the few office buildings to accommodate 500-plus people per floor.
More than 6.4 million square feet of commercial office space has already been leased to firms such as Coach, L’Oréal USA, the Boston Consulting Group, SAP, Vayner Media and Sidewalk Labs, Related said.
The Shops & Restaurants at Hudson Yards, which is more than 70 percent committed, according to Related, has had its opening date moved from fall 2018 to 2019 to coincide with the unveiling of the five-acre Public Square and Gardens, where Thomas Heatherwick’s “Vessel” sculpture will be located; 30 Hudson Yards, the future headquarters of DNB Bank, Kohlberg, Kravis & Roberts, Time Warner Inc. and Wells Fargo Securities, and 35 Hudson Yards, a mixed-use tower.
Hudson Yards, which extends from 30th to 34th Streets between Tenth Avenue and the West Side Highway, is considered the largest private real estate development in the U.S. and the largest development in New York since Rockefeller Center in 1939. When it’s finished in 2025, it will include more than 17 million square feet of commercial and residential space, more than 100 shops and Manhattan’s first Neiman Marcus unit, a collection of restaurants, 4,000 residences, a 750-seat public school, a 200-room Equinox hotel and 14 acres of public open space.