Spiral Tower in Hudson Yards Eyes $2.7 Billion Bond Refinancing

New York: So, Tishman Speyer and Henry Crown are back in the bond market. They’re looking to refinance the Spiral office tower in Hudson Yards. This comes just a few months after they wrapped up a huge commercial mortgage deal.

They’re planning to sell about $2.65 billion in bonds backed by the mortgage on this impressive property. Word is, they’ll finalize this sale later this week. Plus, there’s another $200 million in debt that will be securitized in future deals.

The money from this refinancing will help pay off existing debts. This includes a hefty $1.37 billion construction loan and $216 million owed to investors in the EB-5 visa program. They’ll also set aside some funds for tenant reserves and return equity to the sponsor.

Once this deal closes, it could be the first bond sale in the single-asset, single-borrower commercial mortgage market this year. Just last month, they closed a $3.4 billion bond sale for Rockefeller Center, which was the biggest deal since 2021.

Last year, debt sales in this sector really took off, with nearly $70 billion priced. This year, though, it’s been a different story, with less than $20 billion. Many office landlords are still trying to navigate the fallout from the pandemic.

But prestige properties like the Spiral, which stands over 1,000 feet tall and was designed by Bjarke Ingels Group, are finding it easier to get financing. Since it opened a little over two years ago, several firms, including Pfizer, have signed on as tenants, making it their global headquarters.

As for the banks involved, Goldman Sachs, JPMorgan, Wells Fargo, and Bank of America all kept quiet when asked for comments. Tishman also didn’t have anything to say, and Henry Crown didn’t respond right away.