A joint venture between L&L Holding Co., Maefield Development and Fortress Investment Group has achieved full capitalization for TSX Broadway, a 46-story, $2.5 billion Times Square entertainment and hotel tower, expected to begin construction in January.
The new $700 million round of equity included a $400 million investment by UBS, increasing the total equity in the building to more than $1 billion. Goldman Sachs added the remainder of the financing needed with a $1.1 billion construction loan.
When completed, TSX Broadway will be a unique offering, becoming the first full-building promotional platform in the country. Situated at 1568 Broadway, the property will feature the only permanent outdoor stage in Times Square—rising 30 feet in the air—and the most advanced technology package in Manhattan.
A one-of-a-kind tower
The building will also include dedicated retail, hospitality, food and beverage spaces. The ground-floor retail will feature 75,000 square feet on 10 floors, with 100 feet of storefront facing Times Square. The 30,000-square-foot food and beverage component will include a 10,000-square-foot outdoor terrace and a dedicated entrance with a 90-foot exterior sign. A 669-key hotel with floor-to-ceiling glass windows will provide direct views of Times Square. Thirty ‘Ball Drop Suites’ will be positioned to view the excitement and energy of New Year’s Eve.
“Our goal with TSX Broadway is to provide brands an unprecedented canvas for innovation in the heart of Times Square,” David Levinson, L&L Holding Co.’s chairman & CEO, said in a prepared statement. “Times Square is the most important urban space in America, it represents who we are in the world and has been the home of the live arts for more than a century,” added Mark Siffin, chairman & CEO of Maefield Development.
Cushman & Wakefield advised on the equity raised, while HFF acted as advisor for the construction loan. In October, a joint venture of L&L Holding Co., Normandy Real Estate Partners and an institutional investor advised by J.P. Morgan Asset Management closed on the $880 million acquisition of Terminal Stores, a 1.2 million-square-foot property in West Chelsea.
Images courtesy of L&L Holding