Financing Secured for Projects in The Woodlands® and Ward Village®
DALLAS, March 30, 2020 /PRNewswire/ -- The Howard Hughes Corporation® (NYSE: HHC) announced today its recent closing on two loans totaling over $490 million. A $356.8 million construction loan was secured at Ward Village® for its sixth residential mixed-use development, Kō'ula, reflecting continued strong demand to live in the acclaimed 60-acre master planned community transforming Oahu. In addition, a $137 million, 5-year term loan was secured for 9950 Woodloch Forest Drive, one of two premier Class AAA towers in The Woodlands® comprising the newly rebranded The Woodlands Towers at The Waterway.
At Ward Village, The $356.8 million construction loan for Kō'ula, which has a three-year initial term with a one-year extension, carries an interest rate of London Interbank Offered Rate (LIBOR) + 3.0%. Total project costs of $485.1 million, exclusive of land, will be covered by the loan, existing buyer deposits and approximately $28.2 million of cash equity. The loan is led by US Bank with seven other participating lenders.
"With nearly 75% of homes already pre-sold at Kō'ula, we continue to see strong momentum in the local market," said Doug Johnstone, President, Hawai'i at The Howard Hughes Corporation. "Today, approximately 90% of our homes (over 2,421 residential units) are sold across the six towers at Ward Village that are either delivered or under construction, producing total contracted sales revenue of approximately $2.7 billion. These robust sales numbers reflect the enthusiastic response to the dynamic community taking shape in the heart of urban Honolulu."
"Ward Village continues its transformation into one of the country's most sought-after urban communities," said Paul H. Layne, Chief Executive Officer, The Howard Hughes Corporation. "Obtaining financing for Kō'ula on the heels of its exceptional pace of sales demonstrates Ward Village's ongoing momentum and unique position in the market. In January, Ward Village launched public sales for its latest tower, Victoria Place, which quickly became the fastest-selling market tower in the history of Ward Village."
In The Woodlands, the 5-year term loan secured for 9950 Woodloch Forest Drive carries an interest-only rate of London Interbank Offered Rate (LIBOR) +1.95% and will provide $63.5 million of initial funding, which will repay the property's allocation of the bridge loan used for the acquisitions of The Woodlands Towers at The Waterway, and provide "good news" money for leasing for total funding up to $137 million. The company is currently documenting the terms for an extension of the remaining $281 million of the bridge loan, pursuant to which HHC would receive a six-month extension at LIBOR plus 235 basis points, and have the option for an additional six-month extension at LIBOR plus 290 basis points, extending the final maturity to June 2021.
This loan follows the recent announcement that a 133,948-square-foot lease was signed with Western Midstream Partners, LP (NYSE: WES) for the top five floors of the building, which is now 35% leased.
The Woodlands Towers at The Waterway is designed to meet the demands of the commercial office market for relocation and expansion, featuring a state-of-the-art, two-level fitness center complete with a basketball and volleyball court, approximately 33,000-square-foot rooftop terrace, building conference facilities, lobby café and a tenant concierge program along with additional amenities. Both Class AAA towers—the 595,000-square-foot, 31-story tower at 9950 Woodloch Forest Drive and the 808,000-square-foot, 30-story tower at 1201 Lake Robbins Drive—are LEED Silver certified, and offer frontage along Interstate 45 with convenient access to the Grand Parkway, Hardy Toll Road and the George Bush Intercontinental Airport.
"The Woodlands has been one of the most acclaimed master planned communities in the country over its 45-year history, currently ranked as the #1 "Best Cities to Live" in Texas and #4 in the nation," said Jim Carman, President of the Houston Region for The Howard Hughes Corporation. "The Woodlands Towers at The Waterway exemplifies are commitment to providing our community and its businesses with unmatched amenities and buildings integrated into exceptional natural surroundings with focus on health, wellness and sustainability." HHC announced its own plans to relocate their corporate headquarters to the building later this year.
About Ward Village®
Developed by The Howard Hughes Corporation®, Ward Village is a 60-acre master-planned community in the heart of Honolulu, located between downtown and Waikīkī, along O'ahu's picturesque south shore. Honoring the distinct history of its land, Ward Village is at the forefront of sustainable community development - integrating striking architecture, local culture, and public open space. At full build-out, the community will include approximately one million square feet of unique retail and thousands of homes, in what Architectural Digest named "Best-Planned Community in the United States."
As a result of strong demand for new housing in urban Honolulu, Ward Village is quickly approaching sellout of its first four mixed-use residential towers — Waiea®, Anaha®, Ae'o®, and Ke Kilohana® — transforming the popular shopping and dining district into a vibrant neighborhood that offers ocean views and open space, including its newest outdoor gathering place, Victoria Ward Park. New residential buildings in development or under construction include A'ali'i, Kō'ula, and Victoria Place. Since launching public sales in January 2020, Victoria Place has become the fastest-selling market tower in the history of Ward Village.
Ward Village is the first-ever LEED‐ND Platinum-certified master-planned community in the country, and the only in Hawai'i. At the forefront of sustainable development, it features public amenities at a scale not offered by any other urban community in the state. For more information, visit www.wardvillage.com.
About The Woodlands®
The Woodlands is a 28,000-acre master planned community located 27 miles north of downtown Houston. Throughout its 46-year history, The Woodlands has led the way among master planned communities that practice environmental preservation. It is home to 118,000 people, and over 68,000 people work in the community. The Woodlands is one of the most successful master planned communities in Texas and the nation. The Woodlands was named "Trailblazer of the Year" in 2018 by the Greater Houston Builders Association. The community was also named "Humanitarian of the Year" in 2019, 2017, 2016 and 2007 and "Master Planned Community of the Year" in 2015, 2010 and 2007 by the Greater Houston Builders Association. For more information, visit www.thewoodlands.com. For additional details, find us on Facebook, Twitter, Instagram and LinkedIn.
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 cities and 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.
Cristina Carlson, 646-822-6910
VP, Corporate Communications and Public Relations
The Howard Hughes Corporation Investor Relations
David O'Reilly, 214-741-7744
Chief Financial Officer
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SOURCE The Howard Hughes Corporation