It’s not the amount of money RXR sought earlier this year, but it still landed a major loan for the renovation of a signature Times Square property.
Scott Rechler’s firm scored a $1.3 billion financing package from a group of backers, including Morgan Stanley, Apollo Global Management and AIG, Bloomberg reported. RXR and partners have invested another $300 million into the upgrade of 5 Times Square.
The loan, which runs through May 2026, is not the only big development at the office tower. SL Green converted its $139 million mezzanine loan into equity, joining the development team as a partner.
RXR plans to make renovations and improvements to the property amid a continued flight to quality in Manhattan’s office market.
Changes slated for the building include an improved lobby, elevators, food and beverage stations, a golf simulator, a fitness facility and more meeting and event spaces. The capital could also allow for leasing commissions and tenant improvements.
The Real Deal reported in January Rechler was on the hunt for a ten-figure loan for the Times Square office property. Rechler aimed to refinance the 1.1 million-square-foot, 39-story tower with a $1.5 billion loan.
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RXR and David Werner purchased the building in 2014 for $1.5 billion. The partners refinanced in 2017 with a $1.4 billion debt package from Morgan Stanley.
The property started the year on a high, securing digital media manufacturer Roku to a long-term lease for 240,000 square feet. In addition to leasing the top eight floors, Roku also gained control of the vertical signage on the building that long showed EY’s name before the company’s departure.
The asking rent for Roku’s lease was in the $90s per square foot. The company expects to move in before the end of the year.
— Holden Walter-Warner