NEW YORK, NY – The Rudin Family has secured a $415 million refinancing for the repositioning of 3 Times Square, a 30-story skyscraper in Midtown Manhattan.
J.P. Morgan led a consortium of lenders, including Bank of America and M&T Bank, in providing the refinancing package. The floating-rate loan has a term of three years, with two one-year extension options.
The firm, along with its joint-venture partner Thomson Reuters, will utilize the proceeds to renovate the building’s lobby, build out a tenant amenity floor, activate outdoor space, modernize major building systems and fund leasing efforts.
In 2020, Rudin retained FXCollaborative to help design and implement the capital improvement program for 3 Times Square.
The repositioning includes the creation of a new, glass-walled triple-height lobby, the addition of a streamlined, touchless entry system for office tenants, a fully-renovated destination dispatch elevator system, the addition of a fitness center with locker rooms, and a dedicated 16th floor amenity space that will feature a dining area, coffee bar and a conference and event center. The program additionally includes the creation of a sculptural façade screen, which will serve as one of the largest state-of-the-art electronic billboards in Times Square once complete.
Rudin also recently finalized a 32-year lease agreement with Touro College and University System for a new 245,000-square-foot campus at the property. Touro College will occupy the building’s 3rd through 9th floors and a portion of the 2nd floor and ground floors. As part of the agreement, Rudin will create a dedicated entrance and lobby for Touro students, faculty and staff.
“As a longstanding client, we’re proud to continue supporting the Rudin Family as the lead lender on a financing package for use in partnership with Thomson Reuters in the repositioning of their building in New York City’s iconic Times Square,” states Greg Reimers, J.P. Morgan real estate banking Northeast market manager. “We’re committed to investing in New York City and we’re delighted to work with industry leaders like Rudin and Thomson Reuters to help renovate 3 Times Square and contribute to the strength and vibrancy of the community.”
“Our participation in the transformation of this iconic building is another example of our strong bond with clients and community,” says Matt Petrula, EVP and senior group manager of commercial real estate at M&T Bank. “We’re honored to continue our long standing relationship with the Rudin Family in our shared commitment to the city of New York.”
Originally constructed in 2001 as the North American headquarters of Reuters Group PLC., the tower now features the advanced building operating system of Nantum OS and it is equipped with a High Efficiency Particulate Air filtration system. It has achieved WiredScore Platinum certification, SmartScore Gold certification and the WELL Health-Safety rating.
Rudin Management Co.‘s chief investment officer and EVP Neil Gupta represented Rudin and its joint-venture partner Thomson Reuters in the transaction.
“This major commitment by several of the world’s leading financial institutions serves as a testament to their ongoing faith in the future of New York City, Midtown’s enduring allure and Rudin’s leadership in the commercial office market,” says Gupta.