GlobeSt.com EXCLUSIVE: Construction Financing Lines Up for NYT Tower

NEW YORK CITY-Total construction loan financing in the amount of $322.5 million has been put in place for the development of the 1.7-million-sf New York Times Co. building at 620 Eighth Ave. Just before the year end, Hypo Real Estate Capital Corp., the New York-based subsidiary of Hypo Real Estate Bank International, closed on a $52.5-million participation loan for the project, which is a joint venture of the New York Times Co., Forest City Ratner Cos. and ING Real Estate. GMAC Commercial Mortgage Corp. provided the construction financing.

Forest City president and CEO Bruce Ratner previously said he expects there will be a 35-month construction process. In a deal valued at $175 million, a Tishman Speyer Properties-led limited partnership acquired the Times’ current home, the 750.000-sf building at 229 West 43rd St. The Times Co. will stay in that site until its new headquarters is ready for occupancy in early 2007. Ratner estimates that total cost is expected to be between $830 and $850 million with $100 million for the New York Times portion.