Related Companies, Oxford Properties Group and Mitsui Fudosan America, Inc. today announced the closing of the $3.8 billion financing of 50 Hudson Yards, the development’s park-front, flagship office tower. Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui Banking Corporation served as Co-Lead Arrangers for the $1.5 billion senior construction loan. Related, Oxford and Mitsui Fudosan committed the balance of capital required for the development. The capitalization of 50 Hudson Yards represents the full capitalization for the first phase of development at Hudson Yards, which now exceeds $18 billion, including the landmark recapitalization of 10 Hudson Yards last year. 50 Hudson Yards, a 2.9 million GSF commercial tower anchored by BlackRock (NYSE: BLK), will reset expectations for commercial tenants and set a new standard for the workplace of the future.
Related, Mitsui and Oxford also partnered on the extremely successful 55 Hudson Yards, which will open in 2018 and be home to Boies, Schiller & Flexner; Cooley LLP; Intercept Pharmaceuticals; Milbank, Tweed, Hadley & McCloy LLP; MarketAxess; Point72; Third Point; and Silver Lake. Jeff Blau, CEO of Related Companies said, “This transaction represents the final piece of financing for the entire eastern rail yards, which now totals over $18 billion in capital from marquee investment partners, and the full capitalization of 50 Hudson Yards, a visionary building for visionary companies.
Designed by one of the most celebrated architects in the world, the park-front building offers large, light-filled floorplates, unparalleled amenities and direct connections to the subway and diverse retail, dining and entertainment experiences. This compelling combination of design, innovation and conveniences will reset expectation for the workplace of the future and makes the building an ideal fit for forward thinking global companies and their leadership. 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 are excited to introduce 50 Hudson Yards to the marketplace.”
Commented John E. Westerfield, CEO of Mitsui Fudosan America, “We are delighted to partner with Related and Oxford on the development of another best in class office building in Hudson Yards. Our confidence in Related and the whole Hudson Yards project has been strongly confirmed by the outstanding leasing results we have achieved at 55 Hudson Yards. We very much look forward to the development of 50 Hudson Yards into one of the most modern and technologically advanced work places in New York City.”
Blake Hutcheson, Oxford Properties President and CEO said, “Fully capitalizing 50 Hudson Yards is an achievement that speaks volumes about the success of the project and the strength of our partnership. Much has been anticipated at Hudson Yards, and much has been delivered. We are honored that so many of the world’s great companies continue to choose Hudson Yards, and along with Related we are absolutely committed to delivering New York’s most innovative and desirable neighborhood.”
Mark Myers, head of Wells Fargo Commercial Real Estate said, “We are pleased to again collaborate with Related and Oxford with the financing of 50 Hudson Yards. The transformation taking place on the west side of Manhattan is phenomenal. Wells Fargo is committed to the development of Hudson Yards and the growth of this lively community and we continue to look forward to our tenancy in 30 Hudson Yards.”
Designed by renowned architecture firm Foster + Partners, the 2.9 million GSF building will be New York City’s fourth largest commercial office tower and home to BlackRock, the world’s leader in investment management. The LEED Gold-designed, 58-story building has access points on all four sides and the subway concourse below, offering convenient entry points for employees, and an opportunity for each tenant to create a distinct identity. Spanning an entire city block and standing 985 feet tall, the building will offer its marquee tenants private sky lobbies, outdoor terraces, and executive valet parking and drop off in a private porte-cochère.
Employees will also benefit from on-site bike storage and concierge services; connections to The Shops & Restaurants at Hudson Yards and the outdoor observation deck located at the top of 30 Hudson Yards; and a direct connection to the No. 7 Subway, allowing for an easy commute from Grand Central. Site work has commenced with vertical construction scheduled to begin this fall.
The building is expected to be completed in 2022. The interior design of 50 Hudson Yards is defined by its large floorplates spanning at least 50,000 square feet throughout the building, with six floors offering hundred foot lease spans overlooking the city’s newest park, Hudson Park & Boulevard. One of only a few buildings on Manhattan’s West Side able to accommodate 500-plus people per floor, 50 Hudson Yards was designed to house large enterprise tenants and trading and amenity spaces, as well as accommodate smaller companies and organizations.
The unprecedented commercial office leasing effort at Hudson Yards has attracted more than 6.4 million square feet of occupancy by some of the world’s leading businesses. 10 Hudson Yards, home to Coach Inc., L’Oréal USA, The Boston Consulting Group, SAP, VaynerMedia, Intersection and Sidewalk Labs, opened in May of 2016. The Shops and Restaurants at Hudson Yards, which is already over 70% committed; the 5-acre Public Square and Gardens and Vessel; 30 Hudson Yards, home to DNB Bank, Kohlberg, Kravis & Roberts (KKR), Time Warner Inc. and Wells Fargo Securities; will all open in 2019, along with the site’s mixed-use tower, 35 Hudson Yards.
Hudson Yards is an entirely new neighborhood on Manhattan’s West Side and comprises more than 18 million square feet of mixed-use development. Developed by Related Companies and Oxford Properties Group, it will include more than 100 shops and restaurants, including New York City’s first Neiman Marcus, signature restaurants and diverse eateries; approximately 4,000 residences; 14-acres of public open space; a new 750-seat public school and an Equinox® branded luxury hotel with more than 200 rooms – all offering unparalleled amenities for residents, employees and guests.
ABOUT RELATED COMPANIES: Founded more than 40 years ago, Related Companies is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, fund management, marketing and sales. The company has $50 billion of real estate assets owned or under development including best-in-class mixed-use, residential, and retail, office, trade show and affordable properties in premier high-barrier-to-entry markets. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi, London and Shanghai, and is well-known for having developed the 2.8 million square foot Time Warner Center in New York City and the 72-acre CityPlace in West Palm Beach as well as being a leader in green building. For more information, please visit www.related.com
ABOUT OXFORD PROPERTIES GROUP: Oxford Properties Group is one of the world’s premier real estate investment, development and management companies. Established in 1960, Oxford manages over $40 billion of real estate assets on behalf of its co-owners and investment partners, with a global portfolio spanning over 60 million square feet. We have offices across Canada and in London, Luxembourg, Boston, Washington DC and New York, with regional investment, development and management professionals who have deep real estate expertise and local market insight. Oxford is the global real estate arm of OMERS, the pension plan for Ontario’s municipal employees. For more information about our hands-on approach to real estate, visit www.oxfordproperties.com
MITSUI FUDOSAN AMERICA, INC.: Mitsui Fudosan America, Inc. (MFA) is a real estate investment and development company headquartered in New York City and is the U.S. subsidiary of Mitsui Fudosan Co., Ltd. – Japan’s largest publicly traded real estate company. MFA’s history in the United States dates back to the early 1970’s. Since its inception, MFA has acquired and developed numerous office, multifamily and hospitality properties in major markets throughout the U.S. Today, MFA’s office portfolio includes 55 Hudson Yards, 527 Madison Avenue and 1251 Avenue of the Americas in Midtown Manhattan, the Homer Building and 1200 17th Street in Washington D.C., Waterfront Corporate Center III in Hoboken, NJ, and 270 Brannan in San Francisco. In addition to its significant portfolio of office buildings, MFA has substantially expanded its development of residential properties in the U.S., including 160 Madison Avenue and 525 West 52nd Street in New York City, 650 Indiana and 22 Texas in San Francisco, and 2nd & Pike in Seattle. Additionally, MFA owns and manages the renowned Halekulani Hotel in Waikiki, Hawaii. For more information, please visit www.mfamerica.com
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