Renovation of 5 Times Square Financed by $1.3B Loan

RXR Realty and partners have secured a $1.3 billion financing package for the renovation of 5 Times Square, somewhat less than the $1.5 billion initially being sought early this year. Morgan Stanley, Apollo Global Management, and AIG were among the group of backers providing the loan that runs through May 2026. Another $300 million has been invested into the upgrade of the 1.1 million-square-foot Times Square tower by the development team, and SL Green Realty is joining the project as a partner by converting its $139 million mezzanine into equity. Currently about 31% occupied, approximately 604,000 square feet was vacated upon accounting firm EY (formerly Ernst & Young) relocating to 1 Manhattan West at 400 West 33rd Street. The current largest tenant at the building is San Jose-based digital media manufacturer Roku, which leased 240,000 square feet spanning the top 8 floors in January 2022.