The Swig Company and Himmel + Meringoff, joint owners of 8 Times Square, have closed a $200 million refinancing for the property.
8 Times Square is a 16-story mixed-use office and retail building previously known as 1460 Broadway. The 10-year, fixed-rate loan was provided by Citigroup.
“The successful refinance of 8 Times Square caps an eventful and fulfilling 18 months in which Himmel + Meringoff and The Swig Company have worked together to execute a plan to renovate, re-tenant, rebrand and reposition the building for the next 20 years in this market,” said Ken Perry, CEO of The Swig Company.
“I want to thank our partners and the entire team for their dedication, professionalism and continued engagement on this project,” he added.
8 Times Square sits at the intersection of 41st Street and Broadway. The building is 100 percent leased. The office portion is fully occupied by co-working giant WeWork, which signed a long-term lease in March 2015.
Sports apparel retailer Foot Locker leases the three–story retail portion of the building, which is scheduled to open as the chain’s Times Square megastore in time for the 2016 holiday season.
The Foot Locker lease was named the Most Significant Retail Deal of the Year in 2015 by the Real Estate Board of New York (REBNY).
“From the outset our partnership has shared a strategic vision for how to reposition this building, taking advantage of imminent large block vacancy and creating a new and exciting look and feel for 8 Times Square,” said Stephen J. Meringoff, Co-Managing Partner, Himmel + Meringoff.
“Today, as home to one of WeWork’s largest locations in New York City — and the site of Foot Locker’s upcoming midtown mega-center too — 8 Times Square is the fresh new face on Broadway, reborn as the physical confluence of Herald Square and Times Square whose borders we have effectively redrawn with our artful renovations, rebranding and re-tenanting strategy.”
The transformation of the 215,000 s/f building was made possible when Skadden Arps, the tenant who previously occupied 100 percent of the building’s office space, vacated the premises on March 31 2015.
On that very day, WeWork signed a 19-year lease for all but the second and third floors.
The final touches of the expansive renovation, which has included LED signage, a remodeled, luxurious lobby and common areas, new elevator cabs, all new building systems and 24-hour security, will be completed in December 2016. “We are very pleased with the advantageous refinancing for 8 Times Square which provides us with financial flexibility at very attractive terms,” commented Leslie Wohlman Himmel, Co-Managing Partner, Himmel + Meringoff.
“Along with the property’s new, heightened allure for business and retail tenants, the strength of response we’ve received from the lending community is welcome acknowledgement of the success of our partnership’s strategy.”
The Swig Company was one of the original developers of 1460 Broadway when the property was built in 1951 and has maintained a majority ownership position ever since.
The company formed a partnership with Himmel + Meringoff in August 2014 to acquire the interest of Swig Company’s prior partner.
Himmel + Meringoff became operating partner and oversaw the renovation and leasing campaign. As part of that campaign, the building was officially rebranded as ‘8 Times Square’. Eastdil Secured of New York arranged the $200 million loan for ownership.