The sale of $1.8 billion in bonds for 3 World Trade Center has been approved, following a year-long delay after the Port Authority of New York & New Jersey hesitated to guarantee the debt.
Developer Larry Silverstein is issuing the tax-exempt bonds through New York’s Liberty Development Corp., a subsidiary of New York state’s economic development agency, and Goldman Sachs Group will manage the sale, Bloomberg News reported.
Bonds for the tower are to be issued in three classes, and will be secured by a mortgage on the building, tenant leases and rents. Development of the structure will also be financed by $55 million of equity from Silverstein, $210 million from the Port Authority of New York & New Jersey and additional contributions from the state and city.
A spokesperson for Silverstein did not tell Bloomberg when the bonds would be issued.
The Port Authority voted to release roughly $159 million of insurance money paid by insurers following the destruction of the original World Trade Center complex in June. The agreement allowed Silverstein to immediately tap $50 million of the total proceeds, while the remainder were held in a reserve fund. [Bloomberg News] — Julie Strickland