After four months of negotiating to buy a 44 percent stake in 10 Hudson Yards, a twist of fate kept Christoph Donner stranded in Los Angeles on the day of the closing.
“I was dialed in via email and phone,” the top real estate executive for Allianz said, recalling the culmination of the German insurer’s largest-ever real estate investment in the United States.
But if the closing was anticlimactic for Donner, the deal itself was a robust endorsement of Hudson Yards, the $25 billion, 17 million-square-foot development by Related Companies TRData LogoTINY and Oxford Properties Group. Despite headwinds in the capital markets, the partners have locked up about $14 billion in debt and equity for the project to date.
In December, Related announced $5 billion in financing for the project’s retail component and an office tower at 30 Hudson Yards. Then in late July came news of a $2 billion capitalization at 35 Hudson Yards, followed by the announcement just a few days later Related and Oxford had refinanced 10 Hudson Yards with $1.2 billion in debt from Deutsche Bank and Goldman Sachs; as part of that deal, Allianz bought Coach’s stake as well as part of the Kuwait Investment Authority’s stake in the building in a transaction that valued the tower at $2.15 billion.
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