NEW YORK, June 24, 2019 /PRNewswire/ -- The Howard Hughes Corporation® (NYSE: HHC) announced today it has secured a $250 million term loan for the redevelopment of the Seaport District. The five-year loan is being provided by a consortium of leading financial institutions administered by Civitas Alternative Investments. The term loan has an initial rate of 6.10% for its first two years, followed by London Interbank Offered Rate (LIBOR) + 4.10% with a LIBOR cap of 2.30%. The interest-only loan is non-recourse subject to typical recourse carve outs and prepayable after one year. The loan is secured by only a portion of HHC's Seaport District holdings, including Pier 17, the Tin Building, and various buildings throughout the Historic District that are subject to the existing ground lease. The Tin Building may be removed from the collateral after construction is complete without penalty.
"This financing further validates our vision for what we are creating at the Seaport District," said David R. Weinreb, CEO of The Howard Hughes Corporation. "Consistent with our broader capital markets strategy, we are pleased to have secured this financing that enhances liquidity and provides us with financial and operational flexibility."
"We are thrilled that Civitas could provide financing to continue the dynamic vision The Howard Hughes Corporation has for the Seaport District," said Daniel J. Healy, CEO of Civitas Capital Group.
About The Howard Hughes Corporation®
The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Its award-winning assets include the country's preeminent portfolio of master planned communities, as well as operating properties and development opportunities including the Seaport District in New York; Columbia, Maryland; The Woodlands®, The Woodlands Hills, and Bridgeland® in the Greater Houston, Texas area; Summerlin®, Las Vegas; and Ward Village® in Honolulu, Hawaiʻi. The Howard Hughes Corporation's portfolio is strategically positioned to meet and accelerate development based on market demand, resulting in one of the strongest real estate platforms in the country. Dedicated to innovative placemaking, the company is recognized for its ongoing commitment to design excellence and to the cultural life of its communities. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC. For additional information visit www.howardhughes.com.
About Seaport District NYC
The Seaport District is New York's original commercial hub, located on the East River in Lower Manhattan with unparalleled views of the Brooklyn Bridge, the Statue of Liberty and the city skyline. An essential part of the city for over 300 years, the re-envisioned Seaport District will continue to function as a community anchor and "port of discovery" for the rapidly growing population of Lower Manhattan. The Howard Hughes Corporation® is leveraging the Seaport District's history as the birthplace of innovation, as it transforms a district spanning several city blocks, creating approximately 450,000 square feet of dynamic culinary, fashion, entertainment and cultural experiences.
Highlights include Pier 17®, one of New York City's newest iconic entertainment destinations, with a 1.5-acre rooftop that serves as a year-round community amenity and cultural and event space. The Rooftop at Pier 17 transforms seasonally from a Winterland experience, complete with the city's first open-air rooftop ice skating rink, to an outdoor performance venue which was recently named "Best New Concert Venue" by Pollstar. In addition to hosting the annual Summer Concert Series, The Rooftop at Pier 17 offers an array of seasonal bar and food options, and the standalone R17 restaurant which evolves with the seasons. The Pier Village, a collection of waterfront restaurants by culinary powerhouses on the first two floors of Pier 17, recently welcomed its first restaurant with the opening of Jean-Georges Vongerichten's seafood restaurant, The Fulton. Openings from David Chang of the Momofuku Group, Helene Henderson of Malibu Farm, and Andrew Carmellini are to come. Pier 17 is home to ESPN's new live broadcast studios, which opened in April 2018.
The Seaport District features the only U.S. location of Carla Sozzani's pioneering experiential concept store, 10 Corso Como, as well as the only permanent location of SJP by Sarah Jessica Parker in New York. The district is home to the first iPic Theaters located in Manhattan, which is the premier cinema operator's highest grossing location. The Seaport will also feature a 50,000-square-foot food hall by Jean-Georges in the restored Tin Building that is currently under construction.
The Seaport will be the official home of the 43rd annual Macy's July 4th fireworks, offering a special viewing and dining event at The Fulton, the recently opened seafood restaurant at Pier 17 by Jean-Georges Vongerichten.
For additional information, visit SeaportDistrict.NYC.
About Civitas Capital Group
Civitas Capital Group is a Dallas, Texas-based alternative asset firm that provides a range of products and services for institutional investors, family offices, and qualified individuals. The firm, which has more than $1.4 billion of assets under management in more than 50 investments, focuses on compelling, niche investment strategies in U.S. real estate and lodging. Civitas' executive team has over 100 years combined investment experience. Driven by relentless creativity, Civitas digs deeper to find opportunities others miss. For more information, please visit civitascapital.com.
Safe Harbor Statement
Statements made in this press release that are not historical facts, including statements accompanied by words such as "will," "believe," "expect," "enables," "realize", "plan," "intend," "assume," "transform" and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation's filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
The Howard Hughes Corporation
Cristina Carlson, Vice President, Corporate Communications and Public Relations
For Investor Relations
Chief Financial Officer
SOURCE The Howard Hughes Corporation