The developers of Hudson Yards, a mixed-use development in New York City, have finalized a $5 billion financing package — including $2.19 billion in debt, and a balance in equity financing. The package marks one of the largest capital raises for a real estate project in the U.S. since the 2008 downturn, according to The Wall Street Journal.
Lenders include Bank of America, Wells Fargo, Bank of China, Deutsche Bank, Canadian Imperial Bank of Commerce, Credit Agricola and industrial and Commercial Bank of China. The developers are putting equity into the deal, along with Related Companies, Oxford Properties Group, tenants buying office condominiums and overseas EB-5 program investors. The EB-5 program encourages foreigners to invest in the U.S. and create jobs in exchange for a green card.
This round of financing will be used to build two connected buildings that will include a 90-story office building, a 1-million-square-foot mall and an observation deck. When complete, the project is expected to cost $20 billion, with more than 17 million square feet of office, retail and residential space, The Journal reported. According to developers, construction could take 10 years or more.
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