Transaction Supports Capital Projects Across Manhattan, Brooklyn and School of Medicine Campuses and Refinances Debt
ALBANY, NY – The Dormitory Authority of the State of New York (DASNY) today closed on a $2.180 billion bond issuance for New York University that will finance capital projects across the university's facilities while generating savings through strategic debt refinancing.
The financing package supports a wide range of academic and medical facility-related projects:
Washington Square and Union Square Campus Projects:
- Leasehold for 770 Broadway, which will become a new hub for NYU’s initiative to advance engineering, science, technology, and innovation, and will also enable NYU to generate savings by replacing rented space located elsewhere in New York
- Purchase and renovation of a facility at 400 Lafayette Street
- Acquisition of a 13-story student residence building at 200 East 6th Street
- Conversion of Goddard Hall from a dormitory to an academic building
- Renovations to Chemical Biology department facilities at various sites
- Renovation of 1980 Broadway to house radiology equipment
Brooklyn Campus Projects:
- Improvements to facilities to support the Tandon School of Engineering
Grossman School of Medicine Projects:
- Renovation of 1440 Northern Boulevard in Manhasset to create a new ambulatory care hub
- Renovation of 196 East Main Street in Patchogue to create a new ambulatory surgery center
Additional projects include various renovation, repair, and replacement projects located at facilities across the NYU system. The comprehensive transaction also includes the refunding of $427.1 million of the University's existing Series 2015A bonds, which will generate debt service savings for NYU. The 2025 Bonds also refinanced $250 million in outstanding tax-exempt commercial paper notes.
DASNY President and CEO Robert J. Rodriguez said, "NYU is one of New York's premier educational institutions, and DASNY is pleased to partner with university leadership to provide cost-effective access to capital financing for these important projects. This comprehensive financing package supports NYU's continued growth and excellence while delivering substantial savings through strategic debt refinancing. These investments will create lasting improvements for students and faculty while strengthening NYU's position as a leading research university."
NYU Senior Vice President for Finance and Budget and Chief Financial Officer Taylor Jantz said, "These investments will enhance our facilities across New York City and Long Island, creating improved spaces where our students, faculty, and researchers can thrive. From new academic buildings to expanded medical school facilities, these projects will provide much-needed space to fulfill NYU’s academic mission while also serving New York’s innovation economy. The comprehensive scope of these improvements reflects our commitment to providing exceptional educational opportunities across our campuses."
The bonds were structured as fixed rate, with one tax-exempt and one taxable series. Wells Fargo was the lead bookrunner for the tax-exempt Series 2025A Bonds and RBC Capital Markets was the lead bookrunner for the taxable Series 2025B Bonds. The bonds were sold via negotiated sale on May 29, 2025, and achieved strong investor demand for both series. Yields on the tax-exempt 2025A Bonds ranged from 2.86% in 2026 to 4.81% in 2055 while yields on the taxable 2025B Bonds ranged from 5.23% in 2035 to 5.83% in 2055 for a combined All-in Total Interest cost of 4.99%. Co-bond counsel for the transaction were Hawkins Delafield & Wood LLP and McGlashan Law Firm, P.C. The bonds closed on June 6, 2025.
About DASNY
Founded in 1944, DASNY is New York State's capital project development authority. It finances and constructs sustainable and resilient science, health and education institutions that help New York thrive. It is one of the largest issuers of tax-exempt bonds in the nation with an outstanding bond portfolio of approximately $60.1 billion as of March 31, 2025. DASNY is also a prolific public builder with a construction pipeline of approximately 1,000 projects valued at more than $13 billion as of March 31, 2025. To learn more about DASNY, visit www.dasny.org.