Tishman signs $2.85B refi for the Spiral office tower in Hudson Yards

Tishman Speyer through the entity 509 W 34, L.L.C. as borrower signed a refi loan with lender JPMorgan Chase, Bank of America, and Goldman Sachs valued at $2.85 billion for the Spiral office building (O4) at 66 Hudson Boulevard, also known as 435 Tenth Avenue and 509 West 34th Street in Hudson Yards, Manhattan.
Tishman Speyer issued a press release on the refinancing earlier this month.
The deal closed on January 9, 2025 and was recorded on January 24, 2025. The prior lender was Blackstone Group which held debt that had an original loan amount of $1.3 billion. The building has 2,221,336 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,283 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Tishman Speyer was Julie Lurie. The signatories for JPMorgan Chase, Bank of America, and Goldman Sachs were Jessica Wong, Steven L. Wasser, Scott Epperson, and Jeffrey L. Cirillo.

The property

The office building in Hudson Yards has 2,221,336 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 347 feet and is 197 feet deep with a total lot size of 67,397 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $865.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $12,500 in ECB penalties and $17,685 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Hudson Yards, The majority, or 59 percent of the 16.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 22 percent of the space. In sales, Hudson Yards has had very little sales volume relative to other neighborhoods with $97.6 million in sales volume in the last two years. For development, Hudson Yards has near average amount of major developments among other neighborhoods and is the 24th highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 435 Tenth Avenue, PincusCo has identified the owners of two of the two commercial properties representing 2,761,120 square feet of the 2,761,120 square feet. The two identified owners are Tishman Speyer and Moinian Group.
On the tax block, there was one new building construction project filed totaling 2,216,567 square feet. It is a 2,216,567 square-foot business (B) building submitted by Tishman Speyer and filed by Patrick Shiels with plans filed September 29, 2016 and permitted April 4, 2019.

All properties are office.

The borrower

The PincusCo database currently indicates that Tishman Speyer owned at least 37 commercial properties with 2,352 residential units in New York City with 17,127,785 square feet and a city-determined market value of $6.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $7.4 billion in debt, with top three lenders as Bank of America, Wells Fargo, and Wells Fargo respectively. Within the portfolio, the bulk, or 75 percent of the 17,127,785 square feet of built space are office properties, with specialty properties next occupying 9 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

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