Go Big or Go Home: $2.5B TSX Broadway Now Fully Capitalized
Construction is expected to begin on the towering Times Square development in January 2019.
NEW YORK CITY—L&L Holding Company, Maefield Development and Fortress Investment Group’s 46-story, $2.5 billion TSX Broadway project is now fully capitalized, with construction to begin in January 2019.
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. UBS’s global network of ultra-high net worth and family office investors provided a majority of this equity, with the remainder coming from existing partners and additional institutional limited partners. Goldman Sachs provided the rest of the financing needed to begin construction with a $1.125 billion construction loan.
“Direct private equity and real estate comprise nearly one-third of the portfolios for ultra-high net worth and family office investors,” says Tom Naratil, UBS co-president of Global Wealth Management. He underscores that UBS advisors have deep relationships with ultra-high net worth investors around the world. Naratil adds that with the financial institution’s real estate investment banking team, UBS offers their clients differentiated, direct investment opportunities—such as in TSX Broadway.
The developers say the investments signal the investor community’s enormous interest and confidence in the project and its approach to brand marketing. Located in the heart of Times Square at 1568 Broadway, the project builds upon the bright lights, big city, advertising and entertainment tradition that has become synonymous with the district.
It contains the following distinctive features:
First, it will bring the only permanent, outdoor performance stage to Times Square. The stage will be suspended 30 feet in the air, overlooking the TKTS “Red Steps.”
Second, the signage across TSX Broadway will be an integrated, modern façade lighting system to visually create a single dramatic sign, design or message from the street level to the top of the building. Its 18,000 square-foot LED sign will be Times Square’s largest, highest resolution advertisement, with capabilities to interact with and complement the new stage and to engage directly with its audience.
Finally, the building will use modern technology for its retail, food and beverage vendors. Starting with 15,000 square feet on the ground floor with 100 feet of storefront facing Times Square, it will have 75,000 square feet of flexible retail space, 10 floors of shopping. This area is expected to accommodate 15 million guests annually. There will be a 10,000 square-foot outdoor terrace, the largest in Times Square. A 30,000 square-foot dining destination will overlook Times Square and will have a dedicated entrance with a 90-foot exterior sign.
TSX Broadway will also contain a 669-key luxury hotel with floor-to-ceiling glass windows and direct views of Times Square. For New Year’s Eve, 30 ‘Ball Drop Suites’ will be positioned to view the annual New York tradition which first occurred in 1907. The ball has dropped every subsequent year except for in 1942 and 1943, due to a wartime dimming of the city’s lights, according to the Times Square website.
UBS Investment Bank acted as exclusive placement agent and Cushman & Wakefield’s Doug Harmon, Adam Spies and Marcella Fasluo served as the advisor on the equity raised. HFF was retained as the advisor for the construction loan.