Blackstone Lends $724M for Hudson Commons REFI

Cove Property Group has secured a $724.2 million loan from Blackstone Mortgage Trust to refinance Hudson Commons, a 698,000-square-foot trophy office in Hudson Yards.

Hudson Commons.

NEW YORK CITY – Cove Property Group has secured a $724.2 million loan from Blackstone Mortgage Trust to refinance Hudson Commons, a 25-story, 698,000-square-foot trophy office redevelopment at 441 Ninth Ave. in the Hudson Yards submarket. Eastdil Secured arranged the financing from Blackstone, and  Cole Schotz P.C. represented Cove Property Group in the transaction. 

Cove landed construction and mezzanine loans from Parlex 1 Finance, Parlex 2A Finco, and Parlex 3A Finco, affiliates of Blackstone Mortgage Trust, to swap with the existing loans from Apollo Global Management and JPMorgan Chase.

Hudson Commons is approximately 65% leased by tenants Peloton, Lyft and Brevet Capital Management. Fitness company Peloton anchors the property, occupying 336,000 square feet as its corporate headquarters, Lyft leases 100,000 square feet, and hedge fund Brevet Capital Management leases 16,000 square feet.

Cove had recently added a 17-story structure atop the building that was formerly comprised of 423,000 square feet across eight stories but now totals approximately 700,000 square feet. Amenity features include executive parking,  bike storage, an 8,000-square-foot conferencing center and tenant lounge. An estimated 213,000 square feet of office space is vacant, which includes the top floor penthouse.