Jamestown signs $290M rehab construction loan with JPMorgan Chase for mixed-use in Times Square

Jamestown through the entity Jamestown OTS, L.P. as borrower signed a rehab construction loan with lender JPMorgan Chase valued at $290 million for the mixed-use building at 1 Times Square also known as 1475 Broadway in Times Square, Manhattan.
The deal closed on April 1, 2022 and was recorded on April 12, 2022. The prior lender was Wells Fargo which held debt that had an original loan amount of $208 million. The property has 111,653 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $2,597 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 Jamestown was Matt Bronfman. The signatory for JPMorgan Chase was Simon B. Bruce.

Prior sales and revenue

The 111,653-square-foot property generated revenue of $16.8 million or $150 per square foot, according to the most recent income and expense figures.

The property

The 1475 Broadway parcel has frontage of 143 feet and is 58 feet deep with a total lot size of 5,400 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 $78.7 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received three DOB violations, $1,250 in ECB penalties, and $1,750 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Times Square, the majority, or 58 percent of the 10.1 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 $53.7 million in sales volume in the last two years. For development, Times Square has 1.5 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 3,887,787 square feet of the 3,999,440 square feet. The identified owner is Durst Organization. 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.

Surrounding

Within a 400-foot radius of 1475 Broadway, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, four were for major renovation including a certificate of occupancy change. They were three permit applications with a total initial cost of $1.3 million and one permit with a total initial cost of $369,268. The most recent of these four items was the filing on March 4, 2022 for a 22,448-square-foot E building with zero residential units at 7 Times Square.
Of those nine items, five were loans above $5 million totaling $1.1 billion. The most recent of the five was Rudin Management which borrowed $94.8 million from PGIM Real Estate secured by the 855,000-square-foot, two-unit office building (O4) on 3 Times Square on October 27, 2021.

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