It took more than a year, but BXP and the Moinian Group managed to refinance their debt on 3 Hudson Boulevard after falling into disrepair.
JPMorgan Chase provided developers with a $108 million loan on the site of a planned skyscraper in Hudson Yards, PincusCo reported. The debt replaced an $80 million loan from BXP that matured last August and started accruing interest.
According to BXP, the outstanding balance at the end of the third quarter was $130.7 million income report filed with the SEC. That report showed that in addition to the refinancing, BXP also provided a $50 million mezzanine loan.
Representatives for BXP and the Moinian Group did not immediately respond to requests for comment from The real deal.
BXP provided the $80 million loan when it joined a joint venture with Moinian in 2018. BXP paid $46 million at closing to purchase its interest in the development site, along with a commitment to finance an additional $62 million if necessary. Moinian purchased the entire city block lot from Verizon in 2005 for $54 million.
The debt replaced a mortgage of the same amount from American General Life Insurance Company.
Construction on a 2 million-square-foot project began in 2017, and a design was released in early 2020, prior to the announcement of the project’s $2.6 billion price tag. But the project stalled in the wake of the pandemic and apparent progress has been limited since then.
While looking for financing at 3 Hudson Boulevard, BXP was busy elsewhere on the East Coast. BXP and Delaware North this month secured a $465 million refinancing loan for a portion of the Hub at Causeway in Boston. The company is also moving forward with a 12-story trophy office project in the beleaguered Washington, DC market.
In addition, global insurance and investment firm CV Starr has agreed to lease approximately one-third of BXP’s 1 million-square-foot project at 343 Madison Avenue in Manhattan.
This summer, specialty services firm LNR Partners and trustee Wilmington Trust foreclosed on Moinian’s Midtown properties at 535-545 Fifth Avenue, according to a lawsuit filed in state Supreme Court. The plaintiffs alleged that Moinian defaulted on a $310 million loan to cover the pair’s properties.
— Holden Walter Warner
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