Rudin Lands $415M Debt Package To Renovate Times Square Office Tower
The three-year floating-rate loan comes from a consortium of lenders, led by JPMorgan Chase and including Bank of America and M&T Bank. Rudin also has two one-year extension options for the loan, according to a release.
Proceeds from the loan will be invested into renovating the 30-story skyscraper’s lobby and outdoor space, building out a tenant amenity floor and modernizing major building systems, the New York Post reports.
Rudin’s plans for the 21-year-old tower include creating a glass-walled, triple-height lobby, a touchless entry system, destination dispatch elevator systems and a fitness center with lockers. The 16th floor will be dedicated entirely to amenities and would feature food and beverage spaces as well as a conference and event center.
The loan will also go toward funding leasing efforts at the Midtown tower, which has struggled to retain tenants since before the pandemic.
BMO Capital Markets vacated a large space in the building upon its lease expiration in 2020, Commercial Observer reported at the time. That summer, FTI Consulting also left its office at 3 Times Square in a consolidation to the newly refurbished office tower at 1166 Sixth Ave., The Real Deal previously reported.
3 Times Square's current retail tenants include AT&T, Chase Bank and Steve Madden, while minority stakeholder Thomson Reuters leases a modest amount of office space in the building.
But the tower’s fortunes could be changing, after signing a 32-year lease at the beginning of this year to serve as the campus for Touro College and University System. The private university inked a deal covering all or part of nine floors along with its own entrance, but the tower still had 500K SF available after Touro College signed.