It took more than a year, but BXP and the Moinian Group managed to refinance its debt at 3 Hudson Boulevard after falling into maturity default.
JPMorgan Chase provided the developers with a $108 million loan at the site of a planned skyscraper in Hudson Yards, PincusCo reported. The debt replaced an $80 million loan originated by BXP, which matured last August and began ballooning with a hiked interest rate.
The outstanding balance reached $130.7 million as of the end of the third quarter, according to BXP’s earnings report filed with the SEC. That report disclosed BXP also provided a $50 million mezzanine loan alongside the refinancing.
Representatives of BXP and the Moinian Group did not immediately respond to requests for comment from The Real Deal.
BXP originated the $80 million loan when it joined a venture with Moinian in 2018. BXP paid $46 million at closing to purchase its stake in the development site, along with a commitment to fund an additional $62 million if needed. Moinian purchased the full 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 began on a 2 million-square-foot development in 2017 and a design was released at the beginning of 2020, prior to the disclosure of the project’s $2.6 billion price tag. But the project stalled in the wake of the pandemic and evident progress has been limited since.
While looking for financing at 3 Hudson Boulevard, BXP kept plenty busy elsewhere on the East Coast. BXP and Delaware North this month secured a $465 million refinancing loan for a portion of the Hub on Causeway in Boston. The company is also moving ahead with a 12-story trophy office project in Washington, D.C.’s beleaguered market.
Additionally, global insurance and investment firm C.V. Starr is in agreement to lease roughly a third of BXP’s 1-million-square-foot development at 343 Madison Avenue in Manhattan.
This summer, special servicer LNR Partners and trustee Wilmington Trust moved to foreclose on Moinian’s Midtown properties at 535-545 Fifth Avenue, according to a lawsuit filed in state Supreme Court. The plaintiffs alleged Moinian defaulted on a $310 million loan covering the pair of properties.
— Holden Walter-Warner
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BXP, Delaware North secure $465M refi of Boston development
