BETHESDA, Md– Walker & Dunlop, Inc. announced that it structured $205 million in financing for 619 West 54th Street, located in the heart of Manhattan’s Midtown West neighborhood.
Also known as Hudson Research Center, the Class A life science and medical office property features stunning views of Manhattan’s West Side and the Hudson River and comprises approximately 320,000 rentable square feet.
Since the end of 2013, the number of life science jobs has increased by 70,000 jobs per year. Demand for well-located, modernized life science and medical office space has soared nationwide amid industry growth and lack of available product. Life science tenants have proven to be resilient; during both economic downturns since 2000, life science industry employment has continued to increase. As a result, joint venture owners of Hudson Research Center, Silverstein Properties, Inc. and Taconic Partners, established a leasing strategy to create pre-built life science and medical office spaces that directly cater to tenants.
The trophy property meets the significant pent up demand for this specialized office space within New York’s metropolitan area. Hudson Research Center also boasts a unique M2-4 zoning designation for lab space use, distinctive HVAC and mechanical systems, large floor load capabilities, and high ceiling heights. These rare building characteristics, coupled with a highly accessible location, make 619 West 54th Street the ideal destination for life science and medical office tenants of all sizes.
The financing was arranged by Walker & Dunlop’s Aaron Appel, Keith Kurland, Mo Beler, Jonathan Schwartz, and Adam Schwartz, as well as Michael Diaz, Michael Ianno, and Sean Bastian. The team identified Square Mile as the ideal capital source. The team arranged the interest-only financing with an attractive floating rate, three-year term, and two one-year extension options thereafter. The loan serves to refinance existing debt and to provide future funding for the buildout and lease-up of Hudson Research Center’s premier life science and medical office space.
Said Mr. Kurland, “Walker & Dunlop witnessed an incredible amount of demand for this financing given the best-in-class sponsor and attractive asset type, despite a challenging capital markets landscape during the COVID-19 pandemic. Together, our team was able to drive a competitive process among a number of qualified capital providers before Square Mile was ultimately selected as the lender.”