When completed, the development will include over 17 million gross square feet of new space, including office, retail, residential, hotel, school and cultural uses.
The 28-acre megaproject is being built over the Long Island Rail Road’s working rail yards. To accomplish this, two massive steel and concrete platforms are being erected to cover the active rail lines and form the foundation for much of the development.
Acting on behalf of longtime client Deutsche Bank, a team of real estate and financing attorneys from Loeb & Loeb played an active role in bringing this spectacular project to life.
We represented Deutsche Bank as agent and lender in the Eastern Rail Yards platform construction loan and in the $1.5 billion construction financing for the retail center anchored by Neiman Marcus.
What were the challenges?
Construction of the 1 million-square-foot retail space overlaps with the development of Hudson Yards’ largest office tower, requiring coordination to ensure the separately financed but interdependent buildings could each be completed as if no connectivity existed. The many relevant parties structured and negotiated a co-construction agreement to address these unusual issues.
In addition, lawyers from Loeb & Loeb’s energy and real estate groups worked closely with the developer and its counsel to solve some interesting power issues presented by the plans.
We remained undaunted by the complexities as we worked with an exceptional team at Deutsche Bank as well as the developer and nine other major law firms over a three-year period to reach the most recent closing.
Walk along the High Line or drive by on the West Side Highway and you can watch this new city rising above the rail yards. It’s exciting to see, and we’re proud to be involved with this amazing development.