Days after signing Roku to a massive long-term lease, Scott Rechler is in the market for a ten-figure loan to refinance his Times Square office tower.
Rechler’s RXR Realty aims to refinance its 1.1 million-square-foot, 39-story tower at 5 Times Square to the tune of $1.5 billion, sources familiar with the property told The Real Deal.
RXR is seeking the new debt after signing the streaming service Roku to 240,000 square feet across the building’s top eight floors, filling a major vacancy left by accounting firm EY’s impending relocation to Brookfield’s One Manhattan West.
The tower, which long featured EY’s signage, will now don Roku branding.
“It was long thought of as the EY building, and now, Roku sets a new tech tone,” RXR chief executive Scott Rechler told the New York Post, which first reported the Roku deal, earlier this week.
A representative for RXR did not immediately respond to a request for comment on the refinancing, which is being handled by Eastdil Secured. A representative for the brokerage declined to comment.
RXR owns the office tower along with David Werner, who purchased the building in 2014 for $1.5 billion. The partners refinanced the property in 2017 with a $1.4 billion debt package from Morgan Stanley.
EY is planning to fully vacate the building when its lease expires in May. Roku’s lease runs through 2033, according to marketing materials for the refinancing.
Rechler and Werner recently kicked off a $126 million capital improvement project at the property, which includes a new 50,000-square-foot amenities package on the third and fourth floors. A lobby renovation and modernization to the elevator system are expected to be completed this year.