It’s the dawn of a new day for the home of “Good Morning America.”
The Tamares Group secured a four-year extension on its $505 million debt backing 1500 Broadway in Times Square, the Commercial Observer reported. The senior loan backing the office building was transferred to special servicing over the summer as an October maturity date neared.
Both the $335 million commercial mortgage-backed security senior loan and the $170 million mezzanine loan held by Nuveen were extended. The senior loan was also securitized in a single-asset, single-borrower deal.
Tamares infused $20 million worth of equity in the building as part of the extension. The firm also paid another $20 million for leasing efforts and capital expenditures to stabilize the office property.
“This is a new era, and we are feeling very positive about it,” Tamares chair Poju Zabludowicz told the Observer.
An Iron Hound Management team including Chris Herron and Anthony D’Amelio led the extension talks. SL Green Realty advised Nuveen. Rialto Capital is the special servicer of the CMBS debt.
When the loan was transferred to special servicing over the summer, the 520,000-square-foot building was 75 percent occupied. Tamares is on the verge of losing a couple of major tenants in the coming summer: ABC’s “Good Morning America” is leaving its 66,000-square-foot studio space to go to Disney’s Hudson Square campus, while Nasdaq is leaving 53,000 square feet to consolidate offices elsewhere.
A Tamares Group executive said the landlord was in “preliminary discussions” with possible tenants for the ABC space, saying it could accommodate retail or experiential tenants, in addition to remaining a studio space.
Other tenants at the property include law firm Ice Miller and Shanghai Construction Group America.
Elsewhere in the neighborhood, the American Strategic Investment Company agreed to sell 9 Times Square for $63.5 million, $100 million less than it paid for the office property a decade earlier.
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