NEW YORK CITY—A joint venture between Boston Properties and Rudin Development has closed on a $250 million construction loan for Dock 72, the 16-story, 675,000-square-foot creative office development at the Brooklyn Navy Yard.  The financing was led by J.P. Morgan, M&T Bank and U.S. Bank. Further terms of the transaction were not disclosed.

With Dock 72, the joint venture is undertaking one of the largest New York City commercial buildings to be constructed outside of Manhattan in decades. WeWork is slated to anchor the new building with a 222,000 square-foot lease in addition to acting as co-developer and curator of the amenity spaces, which include a health and wellness center, specialty food and beverage offerings and a rooftop conference center. The joint venture broke ground in May 2016 and the project will be ready for tenant fit-out in late 2017 and will be completed in early 2018.

“The Boston Properties/Rudin team is excited to close this transaction with JP Morgan, M&T Bank and U.S. Bank to move forward with creating this dynamic, unique project, which will be the office building of the future,” says Michael Rudin, partner in Rudin Development, on behalf of the joint venture partnership. “Co-working space is an integral part of New York's new economy, transforming the way people do business. With the development of Dock 72, we are building the infrastructure to meet that growing demand.”

Adds Brooklyn Navy Yard Development Corp. president and CEO David Ehrenberg, “Representing an investment of nearly $400 million, Dock 72 is already having a strong impact on the area's economy, putting hundreds of people to work in what will be a truly iconic addition to the Brooklyn Navy Yard.  In the long term, the building's tenants will bring thousands of good-paying jobs to the Yard, significantly contributing to the Yard's largest expansion in 50 years. Achieving this important milestone affirms the private sector's confidence in both Dock 72 and in the Yard itself.”

Dock 72 is centrally located within the Navy Yard on a 60,000 square-foot strip of land jutting out into Wallabout Bay in the East River between two active dry-docks, offering panoramic views of the City and the activity of the Navy Yard.

Upon completion, the building will feature floor plates ranging from 40,000 to 60,000 square feet, offering contiguous and easily devisable blocks of space for a variety of tenant sizes. The joint venture is seeking LEED certification for the project and the building includes myriad state-of-the-art design, technology, sustainability and resiliency features, including Nantum, an operating system for the built environment.

The construction financing for Dock 72 follows a busy year for commercial activity at the Navy Yard. Recently signed tenants include locally-based food institution Russ & Daughters, which signed a 14,000 square-foot lease to anchor the new public food hall and manufacturing space at the property, and tech incubator and seed fund 1776, which is taking 30,000 square feet on the top floor.

In addition, Netherlands-based B. Amsterdam, Europe's largest business incubator, signed a long-term, 100,000 square-foot lease at Building 127, and Brooklyn-based chocolate maker Mast Brothers Chocolate leased 65,000 square feet at the Yard's Green Manufacturing Center, a LEED-certified manufacturing facility and former ship building center which also counts New Lab, a modern manufacturing and innovative co-working space, as an anchor tenant. Wegmans, a family-owned, Rochester-based grocery chain, is also set to open at the nearby Admiral's Row.

NEW YORK CITY—A joint venture between Boston Properties and Rudin Development has closed on a $250 million construction loan for Dock 72, the 16-story, 675,000-square-foot creative office development at the Brooklyn Navy Yard.  The financing was led by J.P. Morgan, M&T Bank and U.S. Bank. Further terms of the transaction were not disclosed.

With Dock 72, the joint venture is undertaking one of the largest New York City commercial buildings to be constructed outside of Manhattan in decades. WeWork is slated to anchor the new building with a 222,000 square-foot lease in addition to acting as co-developer and curator of the amenity spaces, which include a health and wellness center, specialty food and beverage offerings and a rooftop conference center. The joint venture broke ground in May 2016 and the project will be ready for tenant fit-out in late 2017 and will be completed in early 2018.

“The Boston Properties/Rudin team is excited to close this transaction with JP Morgan, M&T Bank and U.S. Bank to move forward with creating this dynamic, unique project, which will be the office building of the future,” says Michael Rudin, partner in Rudin Development, on behalf of the joint venture partnership. “Co-working space is an integral part of New York's new economy, transforming the way people do business. With the development of Dock 72, we are building the infrastructure to meet that growing demand.”

Adds Brooklyn Navy Yard Development Corp. president and CEO David Ehrenberg, “Representing an investment of nearly $400 million, Dock 72 is already having a strong impact on the area's economy, putting hundreds of people to work in what will be a truly iconic addition to the Brooklyn Navy Yard.  In the long term, the building's tenants will bring thousands of good-paying jobs to the Yard, significantly contributing to the Yard's largest expansion in 50 years. Achieving this important milestone affirms the private sector's confidence in both Dock 72 and in the Yard itself.”

Dock 72 is centrally located within the Navy Yard on a 60,000 square-foot strip of land jutting out into Wallabout Bay in the East River between two active dry-docks, offering panoramic views of the City and the activity of the Navy Yard.

Upon completion, the building will feature floor plates ranging from 40,000 to 60,000 square feet, offering contiguous and easily devisable blocks of space for a variety of tenant sizes. The joint venture is seeking LEED certification for the project and the building includes myriad state-of-the-art design, technology, sustainability and resiliency features, including Nantum, an operating system for the built environment.

The construction financing for Dock 72 follows a busy year for commercial activity at the Navy Yard. Recently signed tenants include locally-based food institution Russ & Daughters, which signed a 14,000 square-foot lease to anchor the new public food hall and manufacturing space at the property, and tech incubator and seed fund 1776, which is taking 30,000 square feet on the top floor.

In addition, Netherlands-based B. Amsterdam, Europe's largest business incubator, signed a long-term, 100,000 square-foot lease at Building 127, and Brooklyn-based chocolate maker Mast Brothers Chocolate leased 65,000 square feet at the Yard's Green Manufacturing Center, a LEED-certified manufacturing facility and former ship building center which also counts New Lab, a modern manufacturing and innovative co-working space, as an anchor tenant. Wegmans, a family-owned, Rochester-based grocery chain, is also set to open at the nearby Admiral's Row.