Iconic Times Square Asset Lands $200M Refi
- Oct 27, 2016
By Veronica Grecu
New York—The Swig Co. and Himmel + Merringoff Properties, the joint owners of Manhattan’s 8 Times Square building, recently secured a $200 million refinancing loan for the mixed-use property. The partnership worked with Eastdil Secured of New York to arrange the 10-year, fixed-rate loan, which was placed with Citigroup.
The loan was used to pay off a $132.4 million refinancing that was provided in 2014 by Aareal Capital Corp. and was used to recapitalize the asset as part of Swig’s move to acquire the 49 percent stake it had not owned in the building from Blackstone Group.
Sitting at the corner of 41st Street and Broadway in the Times Square area, the 16-story property was formerly known as 1460 Broadway. The building was completed in 1952 under plans designed by Emery Roth & Sons and offers 220,000 square feet of commercial space, consisting of 185,000 square feet of Class A office space and 35,000 square feet of flagship retail space on the first three floors.
The refinancing loan follows a comprehensive $60 million project that started in March 2015, right after law firm Skadden, Arps, Slate, Meagher & Flom vacated the building. Scheduled for completion in December this year, the extensive renovation includes a 4,500-square-foot LED sign, a new building lobby and common areas, new elevators, new retail façade, new mechanical systems and 24-hour security.
8 Times Square did not sit vacant for long, as co-working giant WeWork immediately signed a 19-year lease agreement for the entire office portion of the building. One month later, sports apparel retailer Foot Locker leased the retail component on the bottom three stories, with plans to open a Times Square megastore in time for the 2016 holiday season.
“From the outset our partnership has shared a strategic vision for how to reposition this building, taking advantage of imminent large block vacancy and creating a new and exciting look and feel for 8 Times Square,” Stephen Meringoff, co-managing Partner at Himmel + Meringoff, said in prepared remarks.
Image courtesy of Himmel + Meringoff Properties