BXP, Inc. announced the closing of a $465 million, 5.5‑year non‑recourse mortgage loan secured by the podium and office tower at The Hub on Causeway in Boston. The loan, led by Wells Fargo, Morgan Stanley, and Bank of America, replaces two existing loans totaling $490 million and is BXP’s first green‑bond mortgage financing.
The financing carries a fixed interest rate of approximately 5.733% per annum and matures on April 9, 2031. Proceeds were used to repay the prior debt, strengthening the balance sheet and providing a low‑cost, long‑term capital structure for the transit‑oriented development that includes office, retail, entertainment, hotel, residential, and a direct entrance to TD Garden and North Station.
The transaction underscores BXP’s commitment to sustainable development and its ability to secure attractive financing for high‑quality assets. By replacing higher‑rate debt with a green‑bond mortgage, BXP reduces interest expense and aligns with ESG expectations, potentially improving investor perception and supporting future capital allocation for new projects.
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