New Yorkers looking to be at the center of everything may get their chance, if an idea by Scott Rechler and Marc Holliday comes to fruition.
Their firms, RXR and SL Green, are looking at 5 Times Square as a potential office-to-residential conversion, Commercial Observer reported, citing anonymous sources.
Another indication is that CoStar removed the listing for space at 5 Times Square and told the outlet that the owner is not looking for new commercial tenants. The building’s occupancy was only 31 percent as of September 2022 according to Bloomberg.
The 1.1 million-square-foot, 39-story office tower has been in RXR’s portfolio for 10 years. RXR purchased it with David Werner Real Estate in 2014 for $1.5 billion.
Today the property is owned by RXR and SL Green, which together secured a $1.3 billion refinancing package two years ago, in part to pay for upgrades. Lending partners included Morgan Stanley, Apollo Global Management and AIG, according to the outlet.
The renovation improved the lobby, restrooms and elevators, and created a 32,000-square-foot amenity space featuring a fitness center, a lounge, a restaurant bar and two golf simulators.
Commercial Observer did not report how much of the building would be converted to apartments, but noted it may be just a portion, similar to the Helmsley Building at 230 Park Avenue.
The Helmsley Building is subject to a $670 million loan that entered special servicing nine months ago, the outlet reported, citing Morningstar.
The building’s anchor tenant was EY with more than 600,000 square feet until the accounting giant moved to Hudson Yards in 2017.
RXR already has plans to convert a Brooklyn migrant shelter to affordable housing.
— Christina Previte
Read more
Commercial
New York
9 Times Square under contract for $63.5m
New York
Auction set for Kushner’s Times Square retail
Development
New York
TPG and GFP’s Jeff Gural plan office-to-resi conversion in FiDi tower