Stephen Ross at 50 Hudson Yards (Getty Images, Hudson Yards New York)
One of the most expensive office projects in New York City history has gotten some financial backing.
Wells Fargo provided a $348.8 million rehab construction loan to Related Companies and Oxford Properties Group for its 50 Hudson Yards development, PincusCo reported. The deal closed last month and is considered an additional construction loan.
The project’s all-in price tag of about $4 billion makes the development one of the most expensive office projects in the city’s history. The price tag on the Foster + Partners-designed building is $1,407 per square foot, more than the $1,230 per square foot cost of Tishman Speyer’s “Spiral” across the street.
In 2017, the first phase of development marked more than $18 billion raised after Related closed on a $1.5 billion senior construction loan for the project. A consortium of banks provided the financing, Bank of China, Deutsche Bank, Wells Fargo, HSBC and Sumitomo Mitsui Banking Corporation. Oxford and another Related partner, Mitsui Fudosan America, have agreed to provide the remaining financing.
Senior construction debt is lower than Related wanted. Stephen Ross’ company is in advanced talks for a $2.5 billion financing package, which could include about a $700 million equity injection and a $1.8 billion senior loan. The parameters shifted when Mitsui Fudosan took a 90 percent equity stake.
The record holder for the most expensive building is One World Trade Center, which cost about $3.8 billion to build.
Tenants in the 2.8 million-square-foot, 58-story tower include BlackRock and Meta, which recently ended its lease at 225 Park Avenue South to focus on its space at Hudson Yards and the Farley Post Office.
Last month, Charlotte-based bank Truist Financial leased 100,000 square feet at 50 Hudson Yards, agreeing to relocate from Shvo’s 711 Fifth Avenue, the former Coca-Cola building.
Vista Equity Partners in July signed a 95,000-square-foot lease, priced between $175 and $240 per square foot. Software company ServiceNow recently expanded its footprint to 50,000 square feet.
The building is expected to be completed this year.
— Holden Walter-Warner