Developer Tishman Speyer secures funds for $3.7 billion New York office tower

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By: Herbert Lash

NEW YORK: Developer Tishman Speyer said it had secured the necessary financing to build a 65-story, $3.7 billion office tower called “The Spiral” in the Hudson Yards district in New York City’s Far West Side.

The project in Manhattan, featuring cascading landscaped terraces and hanging gardens designed by the BIG-Bjarke Ingels Group, will house Pfizer Inc’s new global headquarters and was made possible by it, Tishman said in a statement.

Financing, planned over several years, includes $1.9 billion in equity from Tishman and more than a dozen institutional and individual investors and pension funds, the company said.

A $1.8 billion construction loan from Blackstone Mortgage Trust Inc also was secured, it said.

Construction at 66 Hudson Boulevard will begin in June and on completion in 2022, the tower will stand 1,031 feet (314.2 meters) high. Terraces will ascend in a spiraling motion, inspiring the name of the 2.8 million square foot (260,130 square meter) building.

The massive mixed-use Hudson Yards district, which rises over railway yards for the nearby Pennsylvania Station, has pushed Manhattan’s core Midtown business area westward toward the Hudson River.

Pfizer, the building’s anchor tenant, will occupy 15 full floors as part of an 800,000 square foot lease that includes portions of the lobby, which rises up to 28 feet, Tishman said.

Fried Frank was legal advisor for Blackstone Mortgage Trust, and Sullivan & Cromwell was legal advisor for Tishman Speyer.

A Cushman & Wakefield team led by Josh Kuriloff represented Pfizer in the lease negotiation.

(Editing by Bernadette Baum)

Source: Reuters