NYC Transit Agency Cashes In On Hudson Yards
The Metropolitan Transportation Authority raised $1.06B Wednesday after selling its first real estate bonds, a historic move considering the agency has almost always relied on fare revenues along with bridge and tunnel fees to support debt.
The agency will repay those securities with the money it makes leasing land in Hudson Yards, the 26-acre construction megaproject in West Manhattan, Bloomberg reports. Goldman Sachs priced the 5% coupon bonds, which mature in 2046, 2051 and 2056, at 1.88% yields, 2.38% and 2.63%, respectively, according to Bloomberg data.
The Hudson Yards project is completely transforming the largest tract of undeveloped land in Manhattan, and when completed it will house three office towers, nine residential buildings and 1M SF of retail space. [Bloomberg]