Dive Brief:
- Oxford Properties and Related Companies announced they have secured a $1.2 billion loan to help finance construction of the $2 billion mixed-use 35 Hudson Yards tower in Manhattan, according to Crain's New York.
- The U.K.-based Children's Investment Fund provided the debt for the 1.1 million-square-foot, 1,000-foot-tall building. Financing for the remaining cost of the project is coming from an undisclosed source.
- The tower, designed by David Childs and Skidmore Owings & Merrill, will include a 200-room hotel, 137 for-sale condo units, a 60,000 square-foot gym and retail space, according to the Commercial Observer.
Dive Insight:
The 35 Hudson Yards tower marks the fifth building in the 28-acre, $25 billion Hudson Yards development and will be the tallest residential tower in the complex. The Children's Investment Fund has been involved with the development since November 2015, when it gave Oxford and Related an $850 million loan for the 15 Hudson Yards tower.
Hudson Yards — a project decades in the making — has proven to be an economic boon for New York. A May study from consulting firm Appleseed found that the development will generate $18.9 billion for the city by the time the entire project is completed. The study also determined that Hudson Yards will represent 2.5% of New York City's gross domestic product and pay nearly $500 million in city taxes annually.
In June, the first skyscraper — formerly known as "Tower C" — in Hudson Yards opened for tenants. Other buildings in the development are in various stages of construction, and Related is currently leasing those properties as well. Before Tower C was completed, contractor Tutor Perini reported that its total 2015 revenue was $500,000 lower than expected, largely because of losses on that building. The contractor called it the "first major loss for Tutor Perini on a fixed-price contract in the past 20 years."
