Brookfield Gets $340 Million Loan for Manhattan WestDavid M. Levitt
Brookfield Office Properties Inc. said it obtained a $340 million loan to finance construction of a platform over a railroad trench for its Manhattan West development as work began on the $4.5 billion project.
A group of banks including HSBC Holdings Plc, Bank of New York Mellon Corp., Toronto-Dominion Bank, Bank of Nova Scotia and Wells Fargo & Co. is providing the financing, Brookfield Chief Executive Officer Dennis Friedrich said today at the platform’s groundbreaking. The deck, which will cover tracks used mainly by Amtrak and New Jersey Transit, is likely to be finished by late 2014 at a cost of $680 million, including land expenses, he said.
Manhattan West will be “the front door of a thriving new neighborhood,” Friedrich said. The 5 million-square-foot (465,000-square-meter) project “will serve as a much-needed expansion of the Midtown central business district.”
Manhattan West and nearby Hudson Yards, being developed by Stephen Ross’s Related Cos., will create more than 18 million square feet of properties and give New York a new cluster of skyscrapers extending west to almost the Hudson River. Related last month began work on its first tower, a 47-story property to be anchored by Coach Inc., the biggest U.S. luxury handbag maker.
Brookfield will use bridge-building technology to construct the deck over the 65-foot (20-meter) trench. The New York-based company plans to drop precast concrete segments into place while minimizing disruption of train service, Friedrich said. The landlord will invest about $340 million of its own money in the platform and will take no public subsidies, he said.
Plans for Manhattan West call for two office towers of about 2 million square feet each, a high-rise apartment building, retail, restaurants and 1.5 acres (0.6 hectares) of outdoor space. Brookfield needs commitments from anchor tenants before beginning the first office tower, Friedrich said.