Hudson Yards Development Close in on $3.8 Billion Worth of Funding

The developer of the massive Hudson Yards development on Manhattan’s West Side has hit another funding milestone with the securing of a further US$1.5 billion construction loan which will allow it to complete its 50 Hudson Yards anchor office building.

This takes the amount raised to US$18 billion so far for the first phase of the sprawling redevelopment of the rail yards precinct near mid-town on Manhattan’s Hudson River.

50 Hudson Yards has also been financed by loans from Oxford Properties Group and Mitsui Fudosan America, partners of venture leader Related Companies for the US$3.8 billion tower, which has secured BlackRock, the world’s largest money manager, as its anchor tenant.

The 269,000 sq m building is due to be completed in 2022 and is designed by Foster + PartnersHudson Yards, which extends from 30th to 34th Streets between Tenth Avenue and the West Side Highway, is considered the largest private real estate development in the USA and the largest development in New York since the Rockefeller Center in 1939.

When it’s finished in 2025, it will include more than 17 million square feet of commercial and residential space, more than 100 shops and Manhattan’s first Neiman Marcus unit, a collection of restaurants, 4,000 residences, a 750-seat public school, a 200-room Equinox hotel and 14 acres of public open space.

The former freight rail line along Manhattan’s West Side has been transformed into an elevated park called the High Line which meanders through Chelsea’s urban landscape which is itself undergoing a significant rejuvenation. Hudson Yards is located at the northern-most point of the 2.3-kilometre High Line.

The Wall Street Journal reports the group of lenders providing the $US1.5bn senior construction loan to 50 Hudson Yards includes Wells Fargo, Deutsche Bank, HSBC, Bank of China and Sumitomo Mitsui.