NEW YORK CITY—Maefield Development reports it has closed on the buyout of its partners on the 20 Times Square development project here, a deal valued at more than $1.5 billion.
The firm, headed by its chairman and CEO Mark Siffin, used the $1.53 billion to recapitalize the development project and buy out its partners that were previously reported to be Winthrop Realty Trust, the Witkoff Group, Vector Group and the Infinity Group. Fortress Investment Group reportedly still has a debt position in the property that is also known as 701 Seventh Ave., No financial details of the recapitalization were released, however, a report in the Real Deal states that French bank Natixis led a group of lenders in providing the financing.
Construction is underway at the site for a 39-story tower that will feature approximately 120,000 square feet of destination retail, attraction and entertainment spaces including a 6,000-square-foot outdoor terrace. The project will top off with a 452-room Marriott-Edition luxury hotel tower located directly above the terrace level. A distinctive feature of the property will be an 18,000-square-foot, interactive, HDLED screen, which is the highest resolution single HDLED screen in Times Square. The project's long-term tenants include the National Football League and Hersheys.
The Maefield-led group of investors acquired an existing 11-story office building at the location in October 2012 for $430 million.
Winthrop Realty Liquidating Trust, the entity charged with liquidating the remaining assets held by Winthrop Realty Trust, reports it received an initial distribution from the sale proceeds of the property, after satisfying the existing debt and closing costs, of approximately $200 million.
Winthrop Realty, part of the 20 Times Square JV, was also paid a portion of the purchase price via a $75-million promissory note that it expects will be purchased from it by Aug. 30, 2018, subject to two one-month extensions. In addition, the joint venture deposited approximately $63.7 million of net proceeds in escrow to fund the completion of the property and certain other costs. Members of the joint venture will receive their respective shares in phases following substantial completion of the project, Winthrop reports.
Further, the Winthrop's trustees approved a liquidating distribution of $5.15 per common beneficial unit in the trust payable in cash on May 8, 2018 to holders of record on May 1, 2018. The trust estimates that for 2018, effectively connected income (a portion of which will be ordinary income and a portion will be capital gains) will be approximately $0.91 per share.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
