Related Cos. and Oxford Properties Group have put together a $2.45B capital stack for its latest office tower in Hudson Yards.
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The development team has landed a $1.6B construction loan for 70 Hudson Yards, a 72-story skyscraper that will be anchored by Deloitte, Related and Oxford announced. Wells Fargo, Bank of America and Standard Chartered PLC underwrote and structured the financing.
Additionally, the duo behind the largest private mixed-used development in U.S. history has lined up more institutional equity investors for the 1.4M SF Manhattan office building, which is the largest ground-up office building to start construction in the U.S. since the pandemic.
While the new equity investors weren't disclosed in the release, city property records first reported by PincusCo show the Kuwait Investment Authority acquired a $412.6M stake in the property.
The tower is already under construction with foundations nearing completion and tenants expected to move in in late 2028. Deloitte has committed to take 800K SF for its North America headquarters. It currently occupies approximately 500K SF in Rockefeller Center.
As part of its lease, Deloitte will have its own lobby on Hudson Boulevard. Leasing for the top floors will commence this year, and those tenants will have a separate entrance on 35th Street.
Designed by Gensler and Roger Ferris + Partners, 70 Hudson Yards is projected to be New York's first all-electric, carbon-neutral office building.
When Related broke ground on the project in July, it was expected to be 47 stories, but plans were expanded to accommodate the return of leasing demand. Inventory of prime office space in particular has been depleted, with the city's vacancy rate falling below 15% in the third quarter, the lowest since before the pandemic, according to JLL.
The financing deal "demonstrates the growing global demand from sophisticated investors and lenders of capital into first class office product," Oxford Global Head of Development Dean Shapiro said in a statement.
70 Hudson Yards is the largest ground-up office project to actually break ground since the pandemic. Many more are on the way in New York City.
BXP started construction on 343 Madison Ave., its $2B, 46-story office next to Grand Central, in July. The developer, formerly known as Boston Properties, is also developing an office project in D.C., which is set to be anchored by law firm Sidley Austin, Bisnow first reported.
Ken Griffin, in partnership with Vornado Realty Trust and Rudin Management, is moving forward with a 1.8M SF office at 350 Park Ave. near JPMorgan Chase’s newly opened global headquarters at 270 Park Ave.
At 570 Fifth Ave., Extell Development is planning a full-block office supertall anchored by Manhattan's first Ikea. The company’s mixed-use development at 655 Madison Ave. is also expected to have offices, along with residential and retail space.
Also on Madison Avenue, SL Green Realty has proposed a 41-story office skyscraper at 346 Madison Ave., replacing the former Brooks Brothers store it acquired last year for $160M.
UPDATE, JAN. 6, 4 P.M. ET: This story has been updated with information about the Kuwait Investment Authority's investment into 70 Hudson Yards.
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