Rosenberg & Estis, P.C. advises The Durst Organization on $1.3 billion financing of One Five One Times Square

Manhattan, NY Rosenberg & Estis, P.C. represented The Durst Organization in the structuring and closing of a $1.3 billion commercial mortgage-backed securities (CMBS) financing secured by One Five One, the 48-story, Class A, LEED Gold certified, 1.8 million s/f office tower located at 151 West 42^nd St. in Times Sq. One Five One was developed and is owned by The Durst Organization.

One of the largest CMBS deals in the borough this year, the transaction involved structuring and required legal coordination among the lending and borrower teams. Wells Fargo Bank, National Association, JPMorgan Chase, and Bank of America served as co-originators of the loan. The lending group was led by Barry Goldman of Wells Fargo. Lender’s counsel was Cadwalader, Wickersham & Taft LLP, which was led by Holly Marcille Chamberlain.

The Durst team was led by Douglas Durst, Jody Durst, Lucas Durst and Ira Marx. Rosenberg & Estis, P.C. members Gary Rosenberg, Eric Orenstein and David Horn and counsel Zachary Rockoff and Zina Lyakhovetsky advised Durst on all legal aspects of the transaction, including negotiation of loan documents, structuring of reserve accounts, review of ground lease terms, and coordination with lenders’ counsel. Chatham Financial provided financial advice to The Durst Organization on this transaction and the Chatham Financial team was led by Andrew Thornfeldt and Matthew Rauh. The interest rate was 5.865% and the loan was for a term of five years with a Maturity Date of August 6, 2030.

“This financing underscores the enduring strength of premier office assets in core Manhattan markets and reflects Durst’s ongoing commitment to long-term asset value,” said Rosenberg. “We are honored to advise Durst in this milestone transaction and proud to have helped navigate the legal complexities associated with a multi-lender CMBS execution of this scale.”

Proceeds of the loan will also fund tenant improvements, closing costs, capital expenditures and return of equity. The financing reflects a loan-to-value ratio based on an estimated property valuation of approximately $2.3 billion.

One Five One, formerly known as 4 Times Sq., underwent $150 million in repositioning following the departures of Condé Nast and Skadden Arps. The property is 92% leased to major tenants including TikTok, Nasdaq, BMO Capital Markets, and Venable LLP. The tower also includes over 72,000 s/f of flagship retail and signage assets.