The Roudin family, owner of 3 Times Square, has secured $415 million to refinance the approximately 950,000 square foot tower in Midtown Manhattan. The Rudin family and their joint venture partner Thomson Reuters obtained the funds from a consortium of lenders.
JP Morgan led the group of financial institutions, which included Bank of America and M&T Bank, which provided the Rudin family and Thomson Reuters with the refinancing of the property. The funds took the form of a three-year variable rate loan with the possibility of extension for two one-year periods.
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JP Morgan et al, however, weren’t the only lenders keen to provide nearly half a billion dollars for a skyscraper that includes 850,000 square feet of rental office space and about 80,000 square feet of ground-floor retail in a mid-market Manhattan office that remains far from its pre-pandemic conditions.
“The lending community’s strong interest in the 3 Times Square refinancing program is an endorsement of our overall repositioning strategy and leasing program, and a commitment to investing in New York City,” Neil Gupta, Principal of investments and executive vice president of Rudin Management Co., the operating arm of the Rudin family holdings, said commercial real estate director. The Rudin family’s longstanding relationship with Bank of America and M&T Bank couldn’t have hurt either.
Borrow from a vision
The Rudin family and Thomson Reuters co-developed 3 Times Square in 2001 as the headquarters of Reuters Group PLC at a cost of $360 million. A public transit mecca, the 30-story tower is within walking distance of more than 20 subway and commuter rail lines, not to mention bus routes and, of course, bike docks. In 2021, the partners revealed plans for a $25 million renovation and repositioning of the first property, with architecture firm FXCollaborative at the helm.
The Rudin family and Thomson Reuters will use proceeds from the refinancing transaction to fund the transformation program, which will include projects such as a complete lobby renovation, activation of an outdoor space and construction of an additional floor. amenity for tenants including offerings such as a dining room. , cafe-bar and conference and event center.
Proceeds will also be directed to leasing the building focused on health and wellness. Already, the ongoing reimagining of 3 Times Square has attracted major engagement. In January 2022, Touro College and University System signed a 32-year lease for a 245,000 square foot campus at 3 Times Square. Touro is expected to move to its new home, with its dedicated entrance and lobby, at 3 Times Square in 2023.