The joint venture behind the TSX Broadway announced full funding of the 46-story tower in the heart of Times Square.
The group, made up of L&L Holding Company, Maefield Development and Fortress Investment Group, said its $2.5 billion TSX Broadway project at 1568 Broadway was fully capitalized and is expected to start construction in January. The building offers a full-building promotional platform built for advertising in the heart of Times Square.
UBS led a new round of equity investments totaling more than $780 million, bringing the total equity in TSX Broadway to more than $1 billion. Goldman Sachs provided the remainder of the financing needed to begin construction with a $1.125 billion construction loan.
“Our goal with TSX Broadway is to provide brands an unprecedented canvas for innovation in the heart of Times Square,” David Levinson, L&L’s chairman and CEO, said.
“Our investors share our vision for leveraging Times Square’s unique value as the predominant global destination of retail and engagement.”
TSX Broadway will feature a permanent outdoor stage that doubles as an elevated performance venue suspended 30 feet in the air.
Tom Naratil, UBS’ co-president of global wealth management, said, “In collaboration with our leading real estate investment banking team, we are uniquely positioned to offer eligible clients high-quality, differentiated, direct investment opportunities, such as TSX Broadway.”
TSX Broadway also comes with an 18,000-square-foot LED advertisement sign that will be the largest in Times Square. The project also includes 75,000 s/f of flexible retail across 10 floors, including 15,000 s/f on the ground floor with 100 feet of store frontage facing Times Square. TSX Broadway also includes a 669-key luxury hotel with floor-to-ceiling windows and 30 suites that offer viewpoints into the annual ball drop.
UBS Investment Bank acted as Exclusive Placement Agent and Cushman & Wakefield acted as advisor on the equity raised. HFF acted as advisor for the construction loan.
“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,” Mark Siffin, Maefield Development’s chairman and CEO said. “We are proud to work with such an incredible community and group of investors who share our vision for the project and its role in the future of this iconic global destination.”