Cove Property Group announced it has closed a $724.2 million refinance for Hudson Commons, its 25-story, 698,000 square foot trophy office redevelopment at 441 Ninth Avenue in the Hudson Yards submarket of Manhattan.
Blackstone Mortgage Trust has provided the debt and an Eastdil Secured team led by Grant Frankel, Managing Director; Phil McKnight, Managing Director; and Ethan Pond, Director represented Cove in the transaction.
“Cove and Baupost are extremely proud of the finished product, which we recently launched to market, and we look to welcome new tenants into the remaining tower floors. We are pleased that Blackstone appreciates the execution of our vision, and we are excited to be partners with them in this next chapter of Hudson Commons,” said Kevin Hoo, Founder and Managing Partner at Cove in a statement.
“We are thrilled to provide senior mortgage financing on Hudson Commons, an outstanding property in Manhattan’s best performing submarket. This transaction exemplifies BXMT’s differentiated ability to finance large scale, high quality real estate with strong sponsorship in core locations,” said Steve Plavin, President and CEO of Blackstone Mortgage Trust.
Cove, in partnership with The Baupost Group, purchased the property from Emblem Health in December 2016. Over the past two years, the partners pursued an ambitious and creative adaptive reuse of the original eight-story former warehouse, combining it with a new, yet contextual, 17-story overbuild.
Imagined from the inside-out with an acute focus on the evolving needs of modern tenants, Hudson Commons is currently 65% leased. Peloton anchors the property with its 336,000 square foot headquarters and is joined by Lyft in 100,000 square feet and Brevet in 16,000 square feet. Only 213,000 square feet of office space remains across the newly constructed boutique tower floors, ranging from 16,000 to 23,000 square feet. This includes the penthouse, which boasts a 28-foot slab height, panoramic views of the city and a private rooftop garden.