Related, Oxford obtain $348.8M in additional construction debt with Wells Fargo for office in Hudson Yards

Related Companies and Oxford Properties Group through the entity 50 HYMC Owner LLC as borrower signed a rehab construction loan with lender Wells Fargo valued at $348.8 million for the office building (O4) at 50 Hudson Yards at 427 Tenth Avenue in Hudson Yards, Manhattan.
The deal closed on September 22, 2022 and was recorded on September 30, 2022. The property has 2,907,315 square feet of built space according to PincusCo analysis of city data.
The signatory for Related Companies and Oxford Properties Group was Andrew Cantor. The signatory for Wells Fargo was Sammy Roy, Nicola Ramsay-Palmer, and Leng Xiong. This is additional construction debt.

The property

The city-designated market value for the property in 2022 is $564.2 million. The most recent loan totaled $428.7 million and was provided by Wells Fargo on November 23, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received two DOB violations, $31,280 in ECB penalties, and $38,690 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 2,244,998 square-foot B building. The project was developed by Andrew Cantor with plans filed December 22, 2016 and permitted July 3, 2018.

The neighborhood

In Hudson Yards, the majority, or 83 percent of the 41.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 9 percent of the space. In sales, Hudson Yards has 3.4 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 12th highest in Manhattan. For development, Hudson Yards has 1.2 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 4,085,955 square feet of the 4,085,955 square feet. The identified owner is Related Companies.
On the tax block, there were two new building construction projects totaling 3,363,277 square feet. The largest is a 2,244,998-square-foot B building developed by Andrew Cantor with plans filed December 22, 2016 and permitted July 3, 2018. The second largest is a 1,118,279-square-foot B building developed by Hagen Scutt with plans filed February 19, 2014 and permitted January 21, 2015.

The majority, or 100 percent of the 4.1 million square feet of built space are office buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Related Companies owned at least 224 commercial properties in New York City with 26,217,554 square feet and a city-determined market value of $8.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.9 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Bank of America respectively. Within the portfolio, the bulk, or 38 percent of the 26,217,554 square feet of built space are elevator properties, with office properties next occupying 23 percent of the space. The bulk, or 64 percent of the built space, is in Manhattan, with Bronx next at 19 percent of the space.

Direct link to Acris document. link