Related, Oxford Secure $1.3B Financing on 15 Hudson Yards

Related Companies and Oxford Properties Group closed $1.3 billion in financing to fund the 15 Hudson Yards building under construction in the mixed-use development on Manhattan's West Side. The finance package includes equity provided by Related, Oxford and a sovereign wealth fund, tax-exempt bonds from New York State Housing Finance Agency and an $850 million construction loan provided by London-based The Children's Investment Fund, according to a Commercial Observer report.

The 960,000 square foot mixed use tower was designed by Diller Scofidio + Renfro and Rockwell Group to obtain LEED Gold certification, and is expected to be completed in 2018, with sales to begin next year. The 70-story tower will offer unobstructed views of the city and Hudson River, and immediate access to the greater Hudson Yards project, which includes 17 million square feet of commercial and residential space, more than 100 shops and restaurants, including the first Neiman Marcus in New York City, approximately 5,000 residences, 14 acres of public open space, a new 750-seat public school and a 200-room, Equinox-branded luxury hotel.

For more news and information visit Blumberg Partners.

Gehry Releases Designs for Sunset Strip Mixed Use

Canadian-born American architect Frank Gehry, based in Los Angeles, has revealed plans for a $300 million mixed use development intended to serve as the "gateway" to California's Sunset Strip. Gehry Partners, alongside Townscape Partners, released renderings and model photos of a cluster of five architecturally distinct buildings across 2.6 acres around a central plaza. Two of the commercial buildings, "made from glass with cross-laminated timber mullions," according the Architectural Record's Anna Fixsen, will be dedicated to retail: stores, cafés, and restaurants. Of three residential buildings, two will feature concrete frames, with the taller one capped by "a sculptural top of billowing glass." And the central residential structure will have "a white, tubular facade ... that is evocative of a sea anemone."

"We're hoping to create a sustainable, livable, walkable community," said developer Tyler Siegel, cofounder of Townscape Partners. Siegel and business partner John Irwin, along with investment advisor Angelo, Gordon & Co., acquired the property in 2012 after leaving the Related Companies to establish their own firm. They considered revamping the existing strip mall, but it became clear that they needed to build something unique—both programmatically and architecturally. "Not only does it form the border between Los Angeles proper and West Hollywood, but it forms the eastern gateway to the famous Sunset Strip," says Siegel. "It's also the first property you see when traveling from the valley of the Santa Monica Mountains to the L.A. basin."

Gehry reportedly said of the project at 8150 Sunset Boulevard, "[Residents and future visitors] should feel that they are part of L.A., a part of L.A. that has a culture that comes with it." Positioned at the so-called Gateway to the Sunset Strip at the curving intersection of Crescent Heights Boulevard, Havenhurst Drive and Sunset Boulevard, Gehry's mixed-use, three-story retail center and 11-story residential tower (which is expected to achieve LEED silver status) emphasizes pedestrian access and preserving Sunset's relatively low streetscape.

For more news and information visit Blumberg Partners.

New York's Hudson Yards Skyscraper Breaks Ground

Mitsui Fudosan America Inc. (MFA), the U.S. operations of Japan's largest real estate company, along with Related Companies and Oxford Properties Group broke ground this week on the trophy office tower at Fifty Five Hudson Yards on Hudson Park & Boulevard. The skyscraper is the latest addition to the 28-acre Hudson Yards development, and represents a new trophy property in the expanding portfolio of global real estate leader Mitsui Fudosan Group.

"We are pleased to partner with Related Companies and Oxford Properties Group on Fifty Five Hudson Yards which we consider a new trophy property in the Mitsui Fudosan U.S. and global portfolios," said Yukio Yoshida, President and CEO of MFA. "Related and Oxford are experienced developers with a proven track record for delivering world class projects, making them ideal partners. Hudson Yards is fast becoming one of the most desirable locations for top echelon tenants, offering an unparalleled modern, mixed-use environment. We are looking forward to being a central part of the success of the Hudson Yards development."

"We are thrilled to partner with Mitsui Fudosan America and commence construction on Fifty Five Hudson Yards. Mitsui Fudosan is one of the worlds' most established real estate developers and investors and their partnership on this project further solidifies the appeal of Hudson Yards with both global capital and global companies," added Stephen Ross, Chairman and Founder of Related Companies. "Hudson Yards is already the future home of Coach, Inc., L'Oréal USA, SAP and Time Warner Inc. and we have seen incredibly strong interest in Fifty Five Hudson Yards. Featuring the best in culture, dining, shopping and more, the commercial office space, steps from transportation and lush, expansive green space, Hudson Yards sets a new standard for working in New York City."

Blake Hutcheson, CEO of Oxford Properties Group, said, "The forward momentum at Hudson Yards is evident to everyone who walks by the development. Oxford is pleased to join Related in partnering with Mitsui Fudosan and commencing construction on Fifty Five Hudson Yards. Each organization has deep experience and incredible portfolios of past developments and investments individually, and this new partnership will benefit from bringing the three together for the first time."

Designed by A. Eugene Kohn and Kohn Pedersen Fox Associates (KPF), the fully capitalized, anticipated LEED Gold, 51-story, 1.3 million gross square foot building is expected to be ready for tenant fit-out in 2017. "Simple in form, but rich in detail, the building was inspired by the historic cast iron architecture found throughout SoHo, and aims to relate to the neighborhoods of Chelsea and the Meatpacking District adjacent to Hudson Yards," said A. Eugene Kohn, Chairman of KPF and Design Architect of Fifty Five Hudson Yards. "Fifty Five Hudson Yards was designed to create an extremely workable and efficient office building which is suitable for a variety of tenants both large and small."

For more news and information visit Blumberg Capital Partners.

Renard and Related Unveil Plans for FBI HQ

Renard Development Company and Related Cos. have revealed their plans for a site at the Greenbelt Metro in an effort to secure the FBI, which announced that it is considering moving its headquarters from the District to either Greenbelt, Landover, or Springfield. Greenbelt Station was recently shortlisted by the General Services Administration for the FBI headquarters solicitation, according to a GlobeSt.com report, and the partnership is hoping to set itself apart from its rivals in Landover and Springfield by releasing its plans prior to selection.

The 78-acre site near Interstates 95 and 495 and exit 24 in Greenbelt, Maryland would include a secured campus for the FBI as well as a 300-room hotel and conference center and additional office, residential and retail uses. Renard's design would pair a secure headquarters complex of five buildings with a mixed-use development of five additional buildings accessible to the public, all served by the Greenbelt Metro station, according to a Washington Business Journal article. The FBI employees would have their own parking garage, complete with solar panels on the roof, while current metro parking and Kiss and Ride facilities would be replaced with a parking complex next to the Metro entrance.

For more news and information visit Blumberg Capital Partners.

Time Warner Sells Manhattan HQ for $1.3B to Related Cos.

Time Warner Inc. announced this week that it had sold its 1.1 million square foot headquarters building in Manhattan for $1.3 billion to a venture of Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and GIC in a sale-leaseback deal. While Time Warner will continue to lease its current office space until early 2019, the company has plans to relocate to 30 Hudson Yards in the office development by Related and Oxford Properties Group, expecting to acquire more than one million square feet and occupy the space by the end of 2018. Eastdil Secured's Douglas Harmon, Adam Spies and Kevin Donner represented Time Warner in the transaction with the Abu Dhabi fund. Studley is representing Time Warner and CBRE is representing Related and Oxford with respect to Time Warner's planned acquisition of space in Hudson Yards for its new corporate headquarters.

"We see significant upside in leasing the high quality office space following Time Warner Inc.'s planned relocation to 30 Hudson Yards. We believe strong demand for this first-rate office property will translate into a stable income stream which suits GIC as a long-term investor," said Tia Miyamoto, regional head of Americas at GIC Real Estate. "Time Warner Center is one of the premier mixed-use projects in the country."

Oxford Chief Executive Officer Blake Hutcheson said, "Time Warner has shown incredible vision not only in its core business of storytelling, but also in its commitment to establishing a collaborative and creative space. We are very excited to partner with Time Warner alongside Related, and to deliver a business community in which Time Warner will simply thrive."

Time Warner Center is a 2.8 million-square-foot mixed-use complex at the southwest corner of Central Park, which, in addition to office and flex space, also houses a Mandarin Oriental hotel, Jazz at Lincoln Center and some of the city's most expensive condominiums. The long-anticipated Time Warner Center purchase works out to about $1,182 per square foot, according to a CoStar report.

For more news and information visit Blumberg Capital Partners.

KBS Acquires City Place Tower in West Palm Beach

KBS Real Estate Investment Trust II has completed the acquisition of City Place Tower in West Palm Beach, FL for $126.5 million, plus closing costs, according to a South Florida Business Journal article. City Place Office 1 LLC, a joint venture of co-developers Crocker Partners and the Related Companies, sold the $110 million property at $427 per square foot. According to a public filing, the building is expected to generate nearly $73 million in rent from 2011 to 2015.

"City Place Tower is the newest office tower in the Central Business District and the only one built to current ‘hurricane resistant’ code and to offer full back-up power capabilities," said Shannon Hill, KBS Realty Advisors senior vice president, director of acquisitions and dispositions.

City Place Tower includes 8,390 square feet of retail space, plus the first six floors of the building contain 270 parking spaces. The tower was 86% leased at the time of sale with major tenants including Intech (Janus Funds), Cleveland Clinic, Carlton Fields, Edwards Angell, Novak Druce, Shutts & Bowen and Regions Bank.

For more news and information visit Blumberg Capital Partners.