New York City — Related Cos. and Oxford Properties Group have received more than $5 billion in financing for an office tower and retail components within its Hudson Yards development in New York.
The financing will support a flagship office tower at 30 Hudson Yards, in addition to a 1-million-square-foot retail project called Shops and Restaurants at Hudson Yards.
Wells Fargo is purchasing about 500,000 square feet of office space at the project. The bank will use this space for its Wells Fargo Securities’ New York headquarters. It will occupy the space in 2020.
Time Warner also acquired more than 1.3 million square feet of commercial office and broadcast studio space in 30 Hudson Yards. It will use the space as its corporate headquarters. Kohlberg, Kravis & Roberts (KKR) has also joined the building’s roster. The project is now fully committed.
The 90-story tower will stand 1,296 feet tall. Kohn Pedersen Fox Associates is designing the 2.6 million-square-foot building, which will feature river-to-river panoramic views, the city’s highest outdoor observation deck and a direct connection to the new No. 7 subway extension.
Deutsche Bank served as lead arranger and administrative agent, while Bank of China, Crédit Agricole and Industrial and Commercial Bank of China served as joint lead arrangers on the 30 Hudson Yards financing.
The Bank of Nova Scotia served as documentation agent for the Shops and Restaurants lender group. The Shops & Restaurants at Hudson Yards will feature restaurants by Thomas Keller, José Andrés and Costas Spiliadis. It will also be home to New York City’s first-ever Neiman Marcus. This project is scheduled to open in 2018.
The developers also recently announced $1.3 billion in funding for the site’s inaugural residential tower, 15 Hudson Yards. Construction is already underway on 10 million square feet of space on the site’s 28 acres, with the first office tower, 10 Hudson Yards, scheduled to open early next year.
10 Hudson Yards is more than 90 percent committed with Boston Consulting Group, Coach Inc., L’Oréal USA, SAP and VaynerMedia all taking space in the 52-story tower. Initial occupancy at 10 Hudson Yards will commence in early 2016.
The site also contains the 50-story 55 Hudson Yards office project, which is under construction and financed by Mitsui Fudosan America. Boies, Schiller & Flexner will relocate to this space in 2018.
Hudson Yards is the largest private real estate development in the nation’s history, according to the developers. It will include 17 million square feet of commercial and residential space, more than 100 shops and restaurants, about 5,000 residences, a cultural space, 14 acres of public open space, a new 750-seat public school and a 200-room Equinox luxury hotel.
New York-based Related Cos. is a privately owned real estate firm with assets valued in excess of $20 billion.
Toronto-based Oxford Properties Group is a global platform for real estate investment, development and management. It has about 2,000 employees and more than $34 billion of real assets under management.