Photo by Steve Adams | Banker & Tradesman Staff
BXP and Delaware North Cos. are on the verge of landing $490 million in refinancing for The Hub on Causeway’s office and retail space in Boston’s West End.
The transaction includes participation by Wells Fargo Bank, Bank of America and Morgan Stanley Mortgage Capital, according to Commercial Property Executive, which first reported the news.
The transaction includes a $465 million, 5.5-year interest-only loan. The proceeds will refinance $490 million in existing debt and closing costs, and the owners contributed $35 million in cash equity.
The loan applies to the 1 million-square-foot office and retail portion of The Hub on Causeway, including a 31-story office tower currently occupied by 18 tenants. It is expected to close on Oct. 31, CPE reported.
The mixed-use development at 100 Causeway St. is co-owned by BXP and Delaware North Companies.
Verizon signed on as anchor tenant of the office tower in 2018, but has offered most of its space for sublease in recent years. Verizon occupies 167,175 square feet of its original 438,827 square-foot lease, according to a Fitch Ratings report. Nine floors are subleased at rents 7 percent higher than Verizon’s, while two are available.
The transaction does not include the citizenM hotel or the Hub50House apartment tower, which also were parts of the 1.6 million square-foot development, or the adjacent TD Garden.
