A big test of confidence in the future of Manhattan’s office market is coming up in Times Square.
SL Green Realty is looking to sell a $126 million mezzanine loan on the 1.1 million-square-foot 5 Times Square tower, sources told The Real Deal. The building’s anchor tenant, accounting firm EY, is relocating to Brookfield Property Partners’ Manhattan West — which will create a large vacancy to fill.
A representative for SL Green declined to comment.
The owners of 5 Times Square, RXR Realty and David Werner, recently injected $200 million of equity into the trophy office tower and are renovating the building, according to marketing materials by Eastdil Secured, which is marketing the debt.
A spokesperson for Eastdil declined to comment.
On the ground floor, retail tenants include the Disney store and Red Lobster.
SL Green provided the debt as part of a $1.4 billion refinancing package led by Morgan Stanley that RXR and Werner secured in 2017. The Marc Holliday-led REIT has been turning to its debt book since the start of the coronavirus to raise cash, selling a number of loans on properties throughout the city.
The landlord also just came to market with the 13-story office building at 110 Greene Street in Soho, Commercial Observer reported. It’s also shopping 410 Tenth Avenue, an Amazon-anchored office property by Hudson Yards, for $1.1 billion.
Contact Rich Bockmann at [email protected] or 908-415-5229.