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New York

Times Square tower lands $590M loan

Edge Fund Advisors refinances 1540 Broadway

From left: Edge Fund Advisors' Mark Keller and Gary Siegel in front of 1540 Broadway (Edge Fund Advisors, 1540 Broadway, iStock)
From left: Edge Fund Advisors' Mark Keller and Gary Siegel in front of 1540 Broadway (Edge Fund Advisors, 1540 Broadway, iStock)

The former Bertelsmann Building in Times Square landed a $590 million refinancing.

Owners Edge Fund Advisors and HSBC secured the new debt for the office portion of the 44-story tower at 1540 Broadway from Apollo Global Management, Michael Dell’s MSD Partners and Monarch Alternative Capital.

Edge, run by founders Mark Keller and Gary Siegel, acquired the office floors in the tower along with HSBC Alternative Investments in 2010.

The new financing, arranged by a Newmark team led by Dustin Stolly and Jordan Roeschlaub, replaces some $427 million remaining from a huge financing package the owners borrowed from German lender DekaBank in 2016.

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Pharmaceutical software developer Schrodinger is the largest tenant in the roughly 900,000-square-foot office portion of the building, occupying about 100,000 square feet. Edge and HSBC recently completed $40 million in improvements to the property, including a new 27,000-square-foot amenities center and a co-generation plant that’s expected to generate 70 percent of the building’s energy on-site.

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Located at the intersection of Broadway and Seventh Avenue at the corner of West 45th Street, 1540 Broadway was developed by Bruce Eichner for the German media company Bertelsmann in the late 1980s.

Eichner and project partner VMS Development developed the property into the teeth of the early 1990s recession and the project ended up in bankruptcy. Bertlesman ended up buying a stake in the property.

Today, Vornado Realty Trust owns the retail portion of the property.

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