GREENWICH, Conn., April 10, 2013 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that it led the origination of a $475 million first mortgage and mezzanine loan for phase one of Related Companies and Oxford Properties Groups' Hudson Yards Project (the "Project"). Starwood will provide $350 million in funding and the remainder will be contributed by Oxford Properties Group and the United Brotherhood of Carpenters and Joiners.
The loan will help finance the development of the development's 1.7 million square foot South Tower located on Manhattan's West Side. The interest rate floats over LIBOR and the loan matures in four years with a one-year extension option.
"The Hudson Yards loan represents another example of our ability to attract highly respected sponsors seeking to leverage our industry leading experience and flexible financing solutions for large, complex transactions," said Boyd Fellows, President and Director of Starwood Property Trust. "We are excited to have Starwood Property Trust's name attached to one of New York City's most important and transformational development projects."
Jeff T Blau, Chief Executive Officer of Related Companies said, "We are thrilled to have Starwood Property Trust as our lead lender for the first tower at Hudson Yards. The show of confidence from such an elite lender is testament to the strength of Related and Oxford and the compelling development we are creating at Hudson Yards. Hudson Yards is a transformative development that will forever change the skyline of New York. The team at Starwood showed impressive deal acumen proving to be both sophisticated and flexible. We look forward to working with Starwood on future phases of the project should the opportunity present itself."Situated on the northwest corner of 30th Street and 10th Avenue, the South Tower is the first vertical development in what will ultimately be the largest private master planned development in New York City history. Currently under construction with occupancy slated for 2015, the 47-story South Tower will be home to a number of leading brands including Coach Inc., L'Oreal USA and SAP. Altogether, the 26-acre site that constitutes Hudson Yards will contain over 13 million square feet of office, residential, and retail space. The Project will also include 14 acres of open space and parks. Strategically located in an area with easy access to public transportation, the West Side Highway, and the Lincoln Tunnel, Hudson Yards is the centerpiece of a rapidly transforming neighborhood at the intersection of Midtown and Chelsea. Over $4 billion of local public infrastructure investment is underway, including an extension of the #7 subway from its current terminus at Times Square to a new station between 10th and 11th avenues at West 34th Street. Additionally, plans are underway to create a new cultural facility called the Culture Shed designed by Diller Scofidio + Renfro and the Rockwell Group. Other high-profile investors involved in phase one of the development include Oxford Properties Group, Coach Inc., institutional investors advised by J.P. Morgan Asset Management, and member organizations of the United Brotherhood of Carpenters and Joiners.