Aareal Capital Corporation has provided San Francisco-based The Swig Company and New York City-based Himmel + Meringoff Properties with $134.2m in financing for the redevelopment of 1460 Broadway in Times Square.
The lender, a subsidiary of Wiesbaden, Germany-based Aareal Bank Group, provided a five-year, floating-rate loan with two one-year extension options, Real Estate Capital has learned.
Last month the borrowers teamed up to buy out their former partner’s 49% interest in the 16-story, 215,000 sq ft property, which is located in the heart of Times Square, at the intersection of West 41st Street.
Himmel + Meringoff Properties, led by Leslie Himmel and Steve Meringoff, will oversee the redevelopment of the property. They plan to make it available for lease in 2015.
“We are looking forward to developing one of the few remaining Times Square properties that is zoned to allow for spectacular LED signage as well as creating 35,000 square feet of flagship retail space and 190,000 sq ft of state-of-the-art office space,” Meringoff said in a prepared statement.
The developers plan to turn the Class B office address into a Class A property outfitted with external bright lights and LED signs, a new lobby, elevators and double-height storefronts.
Jeanne Myerson, president and CEO of The Swig Company, noted in a statement that “Aareal Capital Corporation has a unique understanding of commercial projects, specializing in creative repositioning efforts such as ours.”
“Aareal complements a prestigious team that will now invest over $40m to transform 1460 Broadway into a leading building in this very exciting market,” she said.
Eastdil Secured served as the exclusive agent in refinancing the project and the partnership’s exclusive advisor on a previous equity recapitalization.