Tamares Group has inked a four-year extension for its $505 million loan on its Times Square office building, 1500 Broadway, as the landlord prepares to say goodbye to two major tenants.
The debt on the asset breaks down to a $170 million mezzanine loan and a $335 million mortgage-backed securities senior loan, according to a report from the Commercial Observer. The senior portion of the debt was moved to special serving before the maturity took effect on October 2024.
As part of the deal, Tamares is pouring in $20 million worth of equity into 1500 Broadway and about a $20 million payment for capex and leasing to stabilize the property, the CO said.
The loan comes from Nuveen, which is being advised by SL Green Realty, with Iron Hound Management leading the restructuring efforts.
The move allows Tamares to prepare 1500 Broadway to welcome a new wave of tenants. Good Morning America will be moving its studio this summer to a new campus in Hudson Square. The show has operated at 1500 Broadway since 1999 and currently occupies 66,000 square feet of space there. Also, Nasdaq, which occupies 53,000 square feet, will leave the property for 150 West 42nd Street, owned by parent Walt Disney Company.
In total, 1500 Broadway spans 520,000 total square feet and houses other tenants including Ice Miller, and Shanghai Construction Group America.
“We are in preliminary discussions with some potential tenants for the Disney space,” Itrat Sayeed, managing director at Tamares Group, told CO.
“We’re also working on some concept plans for expanding the signage at the building. On the office front, we’ve seen a significant return for demand for office space. So all three of those fronts have very positive outlooks.”
In February, Manhattan leasing volume plunged by 12.5 percent from the previous month to 3.18 million square feet, a report from Colliers finds. The Midtown South submarket saw the biggest dip, with a 60 percent decline. However, the resilient office recovery in Manhattan since the pandemic shouldn't be overlooked. Leasing remains up 38.3 percent year-over-year and 18.6 percent above the 10-year monthly average.