BOSTON — A joint venture between BXP (NYSE: BXP), formerly Boston Properties, and Delaware North, a privately owned hospitality and entertainment company, has received a $465 million loan for the refinancing of a portion of The Hub on Causeway. The 1.5 million-square-foot mixed-use development is located in the West End neighborhood of Boston.
Situated on the site of the former Boston Garden arena, the original home arena of the Boston Bruins and Boston Celtics, The Hub on Causeway is now a transit-oriented development that features 811,000 square feet of office space and 440 luxury apartments, as well as 250,000 square feet of retail space and a 60,000-square-foot Star Market grocery store. An affiliate of Verizon Communications anchors the development on a 20-year lease.
Wells Fargo Bank, Morgan Stanley Bank and Bank of America provided the loan to BXP and Delaware North. The joint venture refinanced The Hub on Causeway’s office tower and “podium,” which is the lower section that houses a food hall, creative office space and a movie theater.
“We are pleased to complete this financing, which not only enhances the strength and flexibility of our balance sheet, but also demonstrates our access to attractively priced capital in the secured mortgage market,” says Mike LaBelle, executive vice president and CEO of BXP.
The 5.5-year, non-recourse loan includes a 5.73 percent interest rate and is scheduled to mature in April 2031. The proceeds from the loan were used to repay two existing loans that had a combined outstanding principal balance of roughly $490 million.
BXP, the largest publicly traded developer, owner, and manager of premier workplaces in the United States, has a portfolio of 53.7 million square feet and 186 properties, which includes 10 properties under construction or redevelopment. The company’s stock price closed on Thursday, Oct. 9 at $71.45 per share, down from $82.23 a year ago, a decline of 13.1 percent.
Delaware North owns and operates a portfolio of food-service assets in airports, lodging establishments near state and national parks, as well as various entertainment destinations including casinos and gaming facilities. Of note, Delaware North owns the Boston Bruins NHL franchise and TD Garden, the current home arena of the Bruins and the Celtics.
— Abby Cox