NEW YORK CITY — The Durst Organization, a family-owned real estate owner and development firm based in New York City, has received $1.3 billion in CMBS financing for One Five One, a 48-story building located at 151 W. 42nd St. in the Times Square area of Midtown Manhattan.
A consortium of Wells Fargo Bank, JPMorgan Chase and Bank of America provided the loan. The debt, which was structured with a five-year term and an interest rate of 5.86 percent, reflects a loan-to-value ratio based on an estimated property valuation of approximately $2.3 billion.
The Durst Organization will use the proceeds to fund tenant improvements, closing costs and other capital expenditures, as well as to return equity to Durst. At the time of the loan closing, One Five One was 92 percent leased to tenants such as TikTok, NASDAQ Inc., BMO Capital Markets and law firm Venable LLP.
According to Wikipedia, The Durst Organization developed the building in the late 1990s. Formerly known as 4 Times Square, the 1.8 million-square-foot building includes 72,000 square feet of retail space and underwent a $150 million repositioning in the 2010s, following the departures of publishing firm Condé Nast and law firm Skadden Arps.
Law firm Rosenberg & Estis provided legal counsel to The Durst Organization for the financing, and Cadwalader, Wickersham & Taft LLP acted as legal advisor to the lending group. Chatham Financial also provided financial advisory services to Durst.
“This financing underscores the enduring strength of premier office assets in core Manhattan markets and reflects Durst’s ongoing commitment to long-term asset value,” says Gary Rosenberg, founding member of Rosenberg & Estis. “We are honored to advise Durst in this milestone transaction and proud to have helped navigate the legal complexities associated with a multi-lender CMBS execution of this scale.”
The Durst Organization’s portfolio includes 13 million square feet of Manhattan office towers, including the One World Trade Center, and more than three million square feet of residential rental properties.
— Hayden Spiess