SL Green Extends $742M Loan on Planned Times Square Casino Site
By Isabelle Durso November 20, 2024 12:04 pm
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SL Green (SLG) Realty might still need a much sought-after casino license for its planned Caesars Palace Times Square at 1515 Broadway, but now its mortgage won’t get in the way.
SL Green received a three-year extension on a $742.8 million mortgage at its 54-story office tower in Times Square, the company announced Wednesday. The loan is expected to reach maturity in March 2028, and the extension comes after the debt was moved to special servicing.
“This is another successful step in executing our plan to extend our debt maturity profile and reflects the strength of the Midtown Manhattan office market,” Brett Herschenfeld, vice president of retail at SL Green, said in a statement.
“This extension provides SL Green and our partners with the time and flexibility needed for our pursuit of Caesars Palace Times Square, bringing world-class entertainment to its most logical location in the heart of Times Square, the world’s greatest entertainment district,” Herschenfeld added.
The building between West 44th and West 45th streets is currently fully leased to media company Paramount, which took 1.6 million square feet at the tower in April 2012 when the company went by the name Viacom, according to the New York Times. The Minskoff Theatre, home to Broadway show “The Lion King,” is also at the property.
SL Green, along with partners Caesar Entertainment and Jay-Z’s Roc Nation, proposed in 2022 to convert the building into a “world-class entertainment destination” in a bid to win one of three coveted gaming licenses set to be awarded in New York in 2025, according to the release.
Last December, a group of Times Square landlords — which calls itself the Coalition for a Better Times Square — backed SL Green’s casino proposal as a beneficial addition to the amenities offered in the popular tourist district, as Commercial Observer previously reported.
However, SL Green’s plan received a less warm welcome from a union representing the majority of Broadway theater workers, who said the proposed gambling den is “not good for Broadway.”
SL Green isn’t the only developer looking to win one of those gaming licenses. Other casino proposals include Related and Wynn Resorts’ push for a project in Hudson Yards, as well as the Soloviev Group and Mohegan’s plan for an entertainment district by the United Nations, among others.
Isabelle Durso can be reached at idurso@commercialobserver.com.
