Troubled Times Square Retail Space Sells For $29M

A decade ago, Kushner spent $295 million for a retail portion of a Times Square building, betting that shopping and sightseeing on New York’s favorite corridor would lead to future profits.

Tourists could marvel at the miniature cities created by the property’s retail tenant, Gulliver’s Gate, while others could explore an exhibit of deep oceans and whales in a space leased to National Geographic.

But Gulliver’s Gate and National Geographic exited the space at 229 West 43rd Street during the pandemic. And Kushner lost the property to a foreclosure in 2024.

Now, an investor recently paid a mere $28 million for the six-story retail portion beneath office space, which had served as the New York Times’ headquarters for decades. The buyer is a Delaware company who acquired the property from the lender.

The buyer plans to reposition and redevelop the property. They have a few options, considering the space is just 34.5 percent occupied, which includes tenants such as Lucky Strike and Los Tacos No. 1.

CBRE’s Jack Stillwagon and Vice Chairman Doug Middleton brokered the deal. BayBridge Real Estate Capital’s Jay Miller and AJ Felberbaum advised the buyer.

The property has had one set back after the next, ever since 2018 when a deal with celebrity chef Todd English and Outstanding Hospitality Management collapsed.

By 2020, Gulliver’s Gate and National Geographic, who accounted for half their rent roll, defaulted on their lease and exited the property. Lenders set to foreclose. An appraisal in 2023, valued the retail property at $84 million, or $338 per square foot, Crain’s reported. In May 2024, the lender submitted a credit bid using its existing $285 million mortgage.