Just before it opens, 20 Times Square will reportedly undergo a dramatic ownership shakeup.
Maefield Development and Fortress Investment Group are buying out all other partners at the building, a group that includes The Witkoff Group, Ian Schrager, New Valley and Winthrop Realty Trust, The Real Deal reports. Maefield and capital partner Fortress previously held what TRD reported as a "profits-only interest" in the property, and its takeover valued the building at $1.5B.
Steve Witkoff led the investment group that bought the 11-story office building at the corner of Seventh Avenue and 47th Street for $430M in 2012 for the expressed purpose of redeveloping it into a hotel. Although the project has been beset by delays, it is scheduled to open in the spring as a 452-room Marriott Edition hotel with 76K SF of retail between the first four floors and basement.
With the buyout expected to close in April, Witkoff and Winthrop have signed an agreement to complete the building's construction on Maefield's behalf, according to TRD. The agreement was brokered by Doug Harmon and Adam Spies of Cushman & Wakefield.
The retail portion has already been partially leased to high-profile tenants Hershey and the NFL, both of which will be debuting experiential concepts at the location. The nine-story LED billboard went online last year.
Maefield is still seeking a reported $1.3B in construction financing for its own hotel development nearby at 1568 Broadway. The search has included attempts to secure EB-5 investors.
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