NEW YORK CITY—In a unanimous vote Wednesday, the Port Authority of New York and New Jersey‘s board of commissioners voted up a plan to allow construction to proceed on Silverstein Properties Inc.’s 3 World Trade Center. The agreement, which taps into $159 million of previously escrowed insurance proceeds, $50 million of which will be released immediately, appears to resolve longstanding uncertainty over financing of the 80-story office tower at the World Trade Center redevelopment site.

The agreement minimizes the amount of senior debt SPI will need to incur on the 2.5-million-square-foot 3 WTC, while also limiting the Port Authority’s exposure to the same level that was set in its 2010 agreement with SPI. The developer expects to raise $300 million in mezzanine debt and/or private equity, as well as $1.2 billion to $1.3 billion of senior fixed-rate bonds. The remainder of the capital contribution includes $463 million in insurance proceeds, as well as $210 million in state and city funding.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.