Mitsui Fudosan America, Inc. (MFA), the U.S. operations of Japan’s largest real estate company, has announced the closing of $3.8 billion in capitalization for 50 Hudson Yards, the development’s park-front, flagship office tower.
MFA entered into a 90%/10% joint venture with Related Companies (“Related”) and Oxford Properties Group (“Oxford”) to develop 50 Hudson Yards, a 3 million rentable square foot office tower in Hudson Yards. The partnership closed a construction loan of $1.5 billion on August 31st, 2017, which is being provided by a bank syndicate led by Wells Fargo and 4 other lead banks, including Sumitomo Mitsui Banking Corporation, Deutsche Bank, HSBC, and Bank of China. The total construction budget for the project is $3.8 billion or approximately $1,270 per rentable square foot, including land. BlackRock (NYSE:BLK) has signed a 20-year lease for approximately 29% of the space.
“We are delighted to partner with Related and Oxford on the development of another best in class office building in Hudson Yards,” commented John E. Westerfield, Chief Executive Officer of Mitsui Fudosan America. “Our confidence in Related and the whole Hudson Yards project has been strongly confirmed by the outstanding leasing results we have achieved at 55 Hudson Yards. We very much look forward to the development of 50 Hudson Yards into one of the most modern and technologically advanced work places in New York City.”
MFA also partnered with Related and Oxford on the highly successful 55 Hudson Yards, which will open in 2018 and will be home to such prestigious businesses as Boies Schiller Flexner LLP; Cooley LLP; Intercept Pharmaceuticals; Milbank, Tweed, Hadley & McCloy LLP; MarketAxess; Point72 Asset Management; Third Point; and Silver Lake.
50 Hudson Yards will be New York City’s fourth largest commercial office tower and headquarters to BlackRock, the world’s leader in investment management. Designed by renowned architecture firm Foster + Partners, the LEED Gold-designed, 58-story building has access points on all four sides and the subway concourse below, offering convenient entry points for employees, and an opportunity for each tenant to create a distinct identity.
Spanning an entire city block and standing 985 feet tall, the building will offer its marquee tenants private sky lobbies, outdoor terraces, and executive valet parking and drop off in a private porte-cochère. Employees will also benefit from on-site bike storage and concierge services; connections to The Shops & Restaurants at Hudson Yards and the outdoor observation deck located at the top of 30 Hudson Yards; and a direct connection to the No. 7 Subway, allowing for an easy commute from Grand Central. Site work has commenced with vertical construction scheduled to begin this fall. The building is expected to be completed in 2022.
The interior design of 50 Hudson Yards is defined by its large, efficient floorplates spanning 50,000 to 80,000 square feet, which can accommodate approximately 500 people per floor. Several floors will offer hundred-foot lease spans, and floors 25 to 31 will offer 17-foot, 8-inch slab-to-slab heights, allowing tenants to create extraordinary trading floors in the sky. Overlooking the city’s newest park, Hudson Park & Boulevard, 50 Hudson Yards was designed to house large enterprise tenants, mission-critical trading operations, and mid-sized firms seeking state of the art office and amenity spaces.
The unprecedented commercial leasing effort at Hudson Yards has attracted more than 6.4 million square feet of occupancy by some of the world’s leading businesses. 10 Hudson Yards, home to Coach Inc., L’Oréal USA, The Boston Consulting Group, SAP, VaynerMedia, Intersection and Sidewalk Labs, opened in May of 2016. The Shops and Restaurants at Hudson Yards; the 5-acre Public Square and Gardens and Vessel; 30 Hudson Yards, home to DNB Bank, Kohlberg, Kravis & Roberts (KKR), Time Warner Inc. and Wells Fargo Securities; will all open in 2019, along with the site’s mixed-use tower, 35 Hudson Yards.
Hudson Yards is an entirely new neighborhood on Manhattan’s West Side and comprises more than 18 million square feet of mixed-use development. Developed by Related Companies and Oxford Properties Group, it will include more than 100 shops and restaurants, including New York City’s first Neiman Marcus; signature restaurants and diverse eateries; approximately 4,000 residences; 14-acres of public open space; a new 750-seat public school and an Equinox® branded luxury hotel with more than 200 rooms – all offering unparalleled amenities for residents, employees and guests.
MFA has a long history of investing in properties in New York City dating back to the 1980’s, highlighted by ownership of the trophy office building at 1251 Avenue of the Americas in midtown, along with the 26-story boutique Class A trophy office building at 527 Madison Avenue and other notable commercial and residential properties.
In addition to its commercial office and residential development and acquisition activities in New York, Mitsui Fudosan America is also actively developing office and residential projects in Washington, D.C., San Francisco, Los Angeles and Seattle.
The project is part of Mitsui Fudosan Group’s global expansion pursuant to its “Innovation 2017” plan which, amongst other objectives, aims to grow the company’s $50 billion portfolio by adding high value-added development projects in international gateway cities.
**Updated hi-resolution renderings of 50 Hudson Yards are available at: https://related.box.com/s/vzztkolraobv61pqnzslqdheraikswqj or by e-mailing Communications@Related.com
ABOUT MITSUI FUDOSAN AMERICA, INC.:
Mitsui Fudosan America, Inc. (MFA) is a real estate investment and development company headquartered in New York City and is the U.S. subsidiary of Mitsui Fudosan Co., Ltd. – Japan’s largest publicly traded real estate company. MFA’s history in the United States dates back to the early 1970’s. Since its inception, MFA has acquired and developed numerous office, multifamily and hospitality properties in major markets throughout the U.S. Today, MFA’s office portfolio includes 55 Hudson Yards, 527 Madison Avenue and 1251 Avenue of the Americas in Midtown Manhattan, the Homer Building and 1200 17th Street in Washington D.C., Waterfront Corporate Center III in Hoboken, NJ, and 270 Brannan in San Francisco. In addition to its significant portfolio of office buildings, MFA has substantially expanded its development of residential properties in the U.S., including 160 Madison Avenue and 525 West 52nd Street in New York City, 650 Indiana and 22 Texas in San Francisco, and 2nd & Pike in Seattle. Additionally, MFA owns and manages the renowned Halekulani Hotel in Waikiki, Hawaii. For more information, please visit www.mfamerica.com