NEW YORK CITY-Winthrop Realty Trust said late Tuesday afternoon it's boosting its participation in the joint venture that owns the development parcel at 701 Seventh Ave. Boston-based Winthrop will increase its financial commitment from $68 million of preferred equity to $120 million, reflecting its decision to participate in the ownership of the hotel portion of Times Square Gateway Center, the mixed-use project that was announced this past October.
Winthrop is also increasing its preferred equity ownership of the property from 45.85% to 61.1%. The REIT plans to contribute an additional $4.9 million to the venture on July 23, and make a second, $4.7-million payment upon refinancing of the existing mortgage and mezzanine debt, according to a release.
GlobeSt.com reported in October that Winthrop was partnering with New Valley, the Witkoff Group, Maefield Development and Infinity Urban Century on the project, the cost of which will run to $800 million including $430 million to acquire the 0.4-acre parcel. It will eventually include hotel and retail components, as well as a 24,000-square-foot LED sign that reportedly will be the largest in the US.
In other news, Winthrop said Tuesday it had sold its Denton, TX retail building for a gross sales price of $1.85 million. Additionally, it secured a $5.1-million loan backed by its Churchill, PA property at an interest rate of 3.5%.
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