BXP and the Moinian Group have refinanced their debt at 3 Hudson Boulevard, a development site in Hudson Yards, after falling into maturity default. JPMorgan Chase provided a $108 million loan for the property, according to PincusCo. This new debt replaces an $80 million loan that BXP originated and which matured last August, resulting in a higher interest rate.
As of the end of the third quarter, the outstanding balance had grown to $130.7 million, based on BXP’s earnings report filed with the SEC. The report also disclosed that BXP provided a $50 million mezzanine loan as part of the refinancing.
Representatives from both BXP and the Moinian Group did not respond to requests for comment from The Real Deal.
BXP initially joined Moinian in a venture at 3 Hudson Boulevard in 2018, originating an $80 million loan and paying $46 million at closing for its stake in the site. The company also committed to provide up to $62 million more if necessary. Moinian previously purchased the full city block lot from Verizon in 2005 for $54 million.
The new financing replaces a mortgage of equal value from American General Life Insurance Company.
Construction on the planned 2-million-square-foot skyscraper began in 2017, with designs released at the start of 2020 before revealing a project cost of $2.6 billion. However, progress stalled following the onset of the pandemic and little advancement has been seen since then.
While seeking financing for this project, BXP continued activity on other developments along the East Coast. This month, BXP and Delaware North secured a $465 million refinancing loan for part of Boston’s Hub on Causeway project. Additionally, BXP is proceeding with a 12-story office building in Washington, D.C., despite challenges in that market.
C.V. Starr has agreed to lease about one-third of BXP’s 1-million-square-foot development at 343 Madison Avenue in Manhattan.
Earlier this year, special servicer LNR Partners and trustee Wilmington Trust began foreclosure proceedings against Moinian’s Midtown properties at 535-545 Fifth Avenue after allegations that Moinian defaulted on a $310 million loan covering those buildings.
— Holden Walter-Warner
