Times Square Tower Nears $1.3B Refi Deal

The Durst Organization has reportedly secured an agreement with lenders Wells Fargo, JPMorgan Chase, and Bank of America to refinance 151 West 42nd Street (formerly known as 4 Times Square). A $1.3 billion commercial-backed security (CMBS) will be originated to refinance the 1.8 million-square-foot tower according to the press release by The Real Deal. Proceeds from the loan that will carry a 6.1% interest rate will “pay off roughly $1.1 billion in existing debt and fund nearly $40 million in reserves and closing costs, according to an S&P Global presale report.” A “$719 million “A” note that earned a preliminary AAA rating form S&P” is includes in the CMBS transaction that is expected to close August 19, 2025. Currently about 92% leased, the Times Square tower is anchored by Chinese-owned social media app TikTok in 232,000 square feet, but due to concerns of its lease potentially being disrupted by a U.S. ban, the lenders reportedly decided to earmark $50 million of the loan into a reserve fund. Durst currently controls the property under a 99-year ground lease with an option to purchase that was executed in June 1988 and commenced in April 1990 with 42nd St. Development Project, Inc., a wholly owned subsidiary of and successor to New York State Urban Development Corp. according to city records.

Source:    https://therealdeal.com/new-york/2025/08/06/durst-nears-1-3b-loan-to-refinance-one-five-one/