Durst Organization adds $200M in debt from JPMorgan Chase at 4 Times Square

The Durst Organization through the entity 4TS II LLC as borrower added $200 million in debt from the lender JPMorgan Chase for the office building (O4) at 4 Times Square at the address 1472 Broadway in Times Square, Manhattan.
The deal closed on September 22, 2022 and was recorded on September 28, 2022. The property has 1,642,675 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $121 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Durst Organization was Lucas Durst. The signatory for JPMorgan Chase was Leart Saliu. This is an additional $200 million on top of the existing original principal $900 million.

Prior sales and revenue

The 1,642,675-square-foot property generated revenue of $120.4 million or $73 per square foot, according to the most recent income and expense figures.

The property

The 1472 Broadway parcel has frontage of 208 feet and is 256 feet deep with a total lot size of 45,800 square feet. The lot is irregular. The zoning is C6-7 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $782.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $16,612 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 1,642,675 square-foot B building. The project was developed by Albert Sanfilippo with plans filed September 26, 2018 and permitted November 1, 2018.

The neighborhood

In Times Square, the majority, or 58 percent of the 10 million square feet of commercial built space are office buildings, with hotel buildings next occupying 30 percent of the space. In sales, Times Square has had very little sales volume relative to other neighborhoods with $85.1 million in sales volume in the last two years. For development, Times Square has 1.7 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 3,999,440 square feet of the 3,999,440 square feet. The two identified owners are Durst Organization and Jamestown.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 4 million square feet of built space are office buildings, with mixed-use buildings next occupying 3 percent of the space.

The borrower

The PincusCo database currently indicates that Durst Organization owned at least 77 commercial properties in New York City with 10,628,694 square feet and a city-determined market value of $4.2 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.3 billion in debt, with top three lenders as Bank of America, Wells Fargo, and Citibank respectively. Within the portfolio, the bulk, or 79 percent of the 10,628,694 square feet of built space are office properties, with elevator properties next occupying 15 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Queens next at 13 percent of the space.

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