One of the most ambitious commercial developments in recent New York City history has been taken over by its lenders.

A Goldman Sachs-led group of investors has taken over TSX Broadway, a $2.5B mixed-use development from L&L Holding Co. and Fortress Investment Group, Bloomberg reports, citing unnamed sources.

The takeover comes after L&L and Fortress failed to pay off more than $1B in loans before their maturity dates. The property will be managed by SL Green Realty following the ownership change, potentially in preparation for a sale, Bloomberg reported.

L&L Holding Co. and SL Green declined to comment to Bisnow. Fortress Investment Group and Goldman Sachs didn't immediately respond to requests for comment.

TSX Broadway at 1568 Broadway cost more than $2.5B to build and spans 550K SF, including a 669-room Tempo by Hilton hotel, an outdoor stage that overlooks Times Square, a food and beverage terrace and 100K SF of retail and entertainment space.

It includes the landmarked Palace Theatre, which was renovated and elevated 30 feet above street level as part of the project. The theater reopened in the spring, and the hotel opened last fall.

Goldman Sachs led a consortium of lenders in originating a $1.1B senior construction loan on the 47-story project in 2018. EB-5 lender U.S. Immigration Fund provided a $543M mezzanine loan, which the developers failed to pay last summer before USIF extended the deadline, The Real Deal reported at the time.

The takeover follows another huge hotel-anchored redevelopment in Times Square that the developer lost control of. Lender Arden Group seized the Margaritaville Times Square Resort last year from developer Soho Properties in a foreclosure auction.

At 20 Times Square, French financial giant Natixis Financial took over the Times Square Edition hotel development, and last year Korean lender Hana Financial maneuvered to try to seize that property from Natixis after buying the land underneath the hotel.