In the latest sign that the construction loan market is getting back on its feet, Starwood Property Trust is nearing the final steps of issuing a $450 million construction loan to the Related Companies for the first phase of the Hudson Yards development, the New York Observer reported. The loan is slated to close in the next 30 days.
If the loan is issued, it will mark the latest in recent activity for Starwood. As previously reported, the developer of the Charles condominium at 1355 First Avenue nabbed $86 million in construction loans from Starwood. Also, the Observer said, Starwood and a controlled fund closed $475 million in acquisition and construction financing for 701 Seventh Avenue, known as the Times Square Gateway Center.
Related and Oxford Property Group are developing the first tower, a 47-story property set to be the home of luxury retailer Coach.
A spokesperson for Related told the Observer that construction on the tower began in December and that they have their “financial commitments” for the building set in place. [NYO] —Zachary Kussin