The $743 million loan tied to SL Green’s 1515 Broadway — the site of the office landlord’s casino bid — landed in special servicing late last month for imminent maturity default, according to a report from Morningstar.
The loan comes due next March and a refinance would likely saddle SL Green with a higher interest rate. The sponsor is currently paying less than 4 percent interest, according to Morningstar.
An SL Green spokesperson said the loan is performing and the firm is “finalizing an extension on the maturity date.”
“1515 is a premier asset located directly in the center of the Times Square bowtie with substantial cash flow to meet all obligations,” the spokesperson said, noting the building is fully leased.
Morningstar similarly called performance “stellar.” SL Green is current on its mortgage payments and revenue at 1515 Broadway is comfortably covering debt service, loan data shows.
The only rub could be the building’s biggest tenant, according to Morningstar.
Paramount leases almost all of 1515 Broadway, and announced layoffs in August that would cut 15 percent of its workforce, including several hundred employees at SL Green’s tower.
Paramount’s lease runs through 2031. But for SL Green, the near-single tenancy could complicate a search for new, long-term debt.
Leasing aside, the use of 1515 Broadway is uncertain.
SL Green announced plans to turn the office tower, which also houses the Miskoff Theater where The Lion King has run for decades, into a Caesar’s Palace casino.
The developer, in partnership with Caesars Entertainment and Jay-Z Roc Nation, submitted the $4 billion complex in a bid for one of three state licenses. The state is expected to announce winners by the end of 2025.
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