Boston Properties Makes $500M Entrance To Hudson Yards District
Boston Properties is one of the country's biggest office landlords and has a sizable New York City portfolio, including the General Motors Building, which it acquired in the most expensive single-building transaction in New York City. But it has had no stake in the fastest-growing neighborhood in recent history, Hudson Yards.
That will change mid-May, when Boston Properties expects to close on a $500M equity investment in 3 Hudson Blvd., the office tower The Moinian Group is building north of Related and Oxford Properties Group's $20B megaproject on Manhattan's Far West Side, The Real Deal reports. The deal is one piece of the capital stack Moinian is seeking to build for its 53-story, 2M SF project. The project broke ground in 2017 but still has no committed anchor tenant.
Related and Oxford have brought on Mitsui Fudosan America as an equity partner for two of the office buildings at Hudson Yards, which is the most high-profile project to have used EB-5 financing, which grants foreign nationals visas in exchange for real estate investment.
West of that project, Brookfield is building Manhattan West, a 7M SF complex with two office towers, an adaptive reuse office building that is already 100% leased, a residential tower and a boutique hotel. Adjacent to 3 Hudson Blvd., Tishman Speyer will start building The Spiral in June after landing a $1.8B construction loan from Blackstone and Pfizer as an anchor tenant, it announced Tuesday.
Despite the competition, The Moinian Group is still seeking a $3B financing package, a combination of $1.8B in equity and $1.2B in debt, and the Boston Properties deal covers one-sixth of its ultimate goal. Moinian, and now Boston Properties, will continue the search for an anchor tenant in a sluggish leasing environment so far in 2018.