JPMorgan is taking the lead on an estimated $840 million Times Square refinancing wave in New York City by backing a pair of redevelopment efforts in the tourist-frequented intersection.
In concert with Bank of America and M&T Bank, JPMorgan will be providing a $415 million refinancing package to the New York-based Rudin Family to revitalize 3 Times Square. The June 27 deal comes a month-and-a-half after JPMorgan committed to supplying $425 million in debt to refinance Jamestown’s existing loans on One Times Square.
Under the new 3 Times Square deal, the 30-storey Midtown tower will have its lobby renovated, a new tenant amenity floor and outdoor space added, building systems modernised and leasing efforts funded. The asset was originally built and debuted in 2001 as the North American headquarters for the Reuters Group, which currently occupies about half the total office space.
Rudin is bringing in new long-term tenants alongside the financing package. Touro College and University will run a new 245,000 square-foot campus within the building as part of a 32-year lease. Rudin is building out a dedicated entrance and lobby for the university as part of the agreement.
Just across 7th Avenue, JPMorgan has also committed to supplying $425 million of financing to Atlanta-based Jamestown as part of a $500 million renovation play for One Times Square.
Public records released last month showed the new funds would refinance CMBS debt from Goldman Sachs, Deutsche Bank and Westdeutsche ImmobilienBank, which has roots in Jamestown’s original 1997 acquisition of the property.
Contrasting 3 Times Square’s mostly inward-focused revitalisation work, the redevelopment of One Times Square is aimed at opening the entertainment hub further to the public with the addition of a viewing deck, museum and interactive experiences spanning 12 floors of the 25-storey building. Atop JPMorgan’s financing, Jamestown also secured an $88.7 million building loan and $39.8 million project loan with Eastdil Secured helping broker the financing.