Deutsche Team Inks Times Square Retail Debt
Deutsche Bank and SL Green Realty have teamed up to provide $370 million of debt to Kushner Cos. on a retail condominium in Manhattan’s Times Square district.
The bank originated a $285 million senior mortgage, while SL Green, a New York REIT, provided $85 million of mezzanine debt. Both loans have fixed rates and run for 10 years. Deutsche plans to securitize the senior note soon.
The 250,000 square feet of retail space is on the lower floors of the former New York Times building, at 229 West 43rd Street. JLL lined up the loans for Kushner, which used the proceeds to retire existing debt.
Kushner bought the condominium last year, paying $296 million to a joint venture between Africa Israel Investments and Five Mile Capital. Since then, the firm headed by Jared Kushner has boosted the property’s value by signing up new tenants, repositioning some space and bringing the occupancy rate up to 100% from 75%.
At the time of the sale, the retail tenants included Bowlmor Lanes, Discovery Times Square, Guitar Center, Guy’s American Kitchen & Bar and Haru Times Square. Three new tenants signed 15-year leases in recent months. They include Times Square Attractions Live, which plans to open a 60,000-sf entertainment venue called “Ocean Giants” next summer. Outstanding Hospitality Management signed up for 12,000 sf for a dining complex to be overseen by chef Todd English, also due in the summer. And Mexican-style restaurant Los Tacos No.1 will open in about 1,800 sf in the coming months.
The building, which encompasses 590,000 sf, served as the headquarters of The New York Times until 2007. It fills the middle of the block between Seventh and Eighth Avenues, with frontage on both West 43rd and West 44th Streets. The 479,000 sf of office space on the upper floors was sold last year by Blackstone to Columbia Property of Atlanta for $516 million.