30 Hudson Yards fully committed; The Shops and Restaurants at Hudson Yards, anchored by Neiman Marcus, set to open in 2018; closings represent one of the largest real estate development transactions in U.S. history
Related Companies and Oxford Properties Group today announced the closing of over $5 billion in financing for 30 Hudson Yards, the site’s flagship office tower, and the one-million-square-foot Shops and Restaurants at Hudson Yards. Bank of America served as lead arranger and administrative agent and Wells Fargo and CIBC served as joint lead arrangers for the 30 Hudson Yards lender group.
Investors in 30 Hudson Yards include Time Warner Inc., KKR, Wells Fargo & Co., Related and Oxford. Deutsche Bank served as lead arranger and administrative agent; Bank of China, Crédit Agricole and Industrial and Commercial Bank of China served as joint lead arrangers; and The Bank of Nova Scotia served as documentation agent for The Shops and Restaurants lender group. Equity investors in the retail complex were Related and Oxford.
Today’s announcement comes just days after the developers announced $1.3 billion in funding for the site’s inaugural residential tower, Fifteen 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.
Jeff T. Blau, CEO of Related Companies, said, “In the past few weeks alone we have closed on over $6 billion of capital, announced commitments to purchase commercial space by both KKR and Wells Fargo and added two new chefs to our restaurant offerings. These transactions represent a tremendous inflection point for Hudson Yards and the continued transformation of the West Side. The depth of commitment from our global roster of lenders, investors and tenants evidences not only the strength of Related and Oxford, but reflects the confidence in our collective vision for Hudson Yards as the new heart of New York. As we continue to meet our milestones on the neighborhood development, we look forward to opening 10 Hudson Yards early next year, launching sales on Fifteen Hudson Yards mid-year and introducing the entire Eastern Rail Yard in less than three years.”
Blake Hutcheson, CEO of Oxford Properties Group, said, “Hudson Yards is the epitome of a live-work-play community. Our objective of building the most digitally-connected community in the world is well underway, and we are pleased by the continued support and enthusiasm that the market is showing in respect to all aspects of the development. This transaction is representative of that support, as we continue to attract top tenants, financing partners and lenders. We are one step closer to seeing the Hudson Yards community come alive.”
30 Hudson Yards is currently under construction. The LEED-Gold designed tower will stand 1,296 feet tall and offer state-of-the-art commercial office space for its tenants. Designed by world-renowned architect Bill Pedersen of Kohn Pedersen Fox Associates, the 2.6-million-gross-square-foot building offers employees river-to-river panoramic views, will host the city’s highest outdoor observation deck and will provide a direct connection to the new No. 7 subway extension.
The unprecedented commercial leasing effort at Hudson Yards has attracted over 4 million square feet of occupancy by some of the world’s leading businesses. 30 Hudson Yards is already fully committed with Wells Fargo & Co., KKR and Time Warner Inc. all moving to Hudson Yards. 30 Hudson Yards will open in 2019.
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 50-story 55 Hudson Yards, also under construction and financed by Mitsui Fudosan America, Inc., previously announced that Boies, Schiller & Flexner will be moving their offices to Hudson Yards in 2018. The Shops & Restaurants at Hudson Yards, designed by Elkus Manfredi Architects, will offer a new retail and dining experience not found anywhere else in New York.
In addition to bringing some of the world’s most celebrated chefs to Manhattan’s West Side, including Thomas Keller, José Andrés and Costas Spiliadis, The Shops & Restaurants at Hudson Yards will also be home to New York City’s first-ever Neiman Marcus. The Shops & Restaurants at Hudson Yards is scheduled to open in 2018. Hudson Yards is the largest private real estate development in the nation’s history. The 28-acre site is being developed by Related Companies and Oxford Properties Group and will include 17 million square feet of commercial and residential space, more than 100 shops and restaurants, approximately 5,000 residences, a unique cultural space, 14 acres of public open space, a new 750-seat public school and a 200-room Equinox® branded luxury hotel—all offering unparalleled amenities for residents, employees and guests. When complete, more than 125,000 people will visit, work in or call Hudson Yards their home.
For more information on Hudson Yards, please visit hudsonyardsnewyork.com.
**Updated hi-resolution renderings of Hudson Yards are available at https://related.box.com/s/vzztkolraobv61pqnzslqdheraikswqj or by e-mailing Communications@Related.com.
Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. 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, São Paulo and Shanghai and boasts a team of approximately 3,000 professionals. The Company’s existing portfolio of real estate assets, valued at over $20 billion, is made up of best-in-class mixed-use, residential, retail, office and affordable properties in premier high-barrier-to-entry markets. Related has developed preeminent mixed-use projects such as Time Warner Center in New York and CityPlace in West Palm Beach. Related also manages approximately $3 billion of equity capital on behalf of sovereign wealth funds, public pension plans, multi-managers, endowments, and family offices. For more information about Related Companies, please visit www.related.com.
About Oxford Properties Group:
Oxford Properties Group is a global platform for real estate investment, development and management, with approximately 2,000 employees and over $34 billion of real assets that it manages for itself and on behalf of its co-owners and investment partners. Established in 1960, Oxford has regional offices in Toronto, London and New York, and the company's portfolio includes approximately 56 million square feet of office, retail, industrial, multi-family and hotel properties. Oxford is the real estate arm of OMERS. For more information, please visit www.oxfordproperties.com.