RXR and TF Cornerstone have successfully secured a $1.2 billion loan for the ambitious 175 Park Avenue project, a 2.9 million-square-foot office tower slated for construction next to Grand Central Terminal. This new funding brings the total financing for the development to $6.2 billion, significantly closing the gap on the project's estimated $6.5 billion cost.
The developers had previously been seeking $1 billion to $2 billion in additional financing beyond a projected $5 billion federal package. While federal officials have not yet officially signed off on the anticipated $4.8 billion federal loan from the U.S. Department of Transportation, the developers are confident it will be in place by June. The project is eligible for federal assistance due to its inclusion of public transit infrastructure improvements.
The total cost of the 83-story tower, which is planned to be as massive as the Empire State Building, is estimated at $6.5 billion. Securing this $1.2 billion loan is a critical step towards commencing construction, which RXR officials have indicated they expect to begin in June. The developers are also actively seeking a key tenant to commit to leasing at least 500,000 square feet of space.
