- The Durst Organization is refinancing its 1.8M SF office tower at 151 W. 42nd St. with a $1.3B CMBS loan, pulling out over $146M in equity.
- The building, now 92% leased and home to TikTok’s East Coast HQ, was formerly known as 4 Times Square and has undergone $150M in renovations.
- $50M of the loan will be held in reserve amid regulatory uncertainty surrounding TikTok, one of the tower’s anchor tenants.
- The deal reflects a broader revival in CMBS activity, with over $59B in loans issued in H1 2025 — the most in more than 15 years.
Refinancing For A Rebound
The Durst Organization is nearing the close of a $1.3B CMBS loan for its Times Square office tower, One Five One, reports Bisnow. The deal will allow the developer to pull out more than $146M in equity. The deal, led by Wells Fargo, JPMorgan Chase, and Bank of America, is expected to close by August 19.
One Five One, formerly 4 Times Square, was built in 1999 and is 92% leased. TikTok, which occupies 232K SF through 2031, is the building’s largest tenant. However, due to ongoing federal pressure on parent company ByteDance, $50M of the loan proceeds will be held in reserve in case a lease disruption occurs.
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Where The Money’s Going
According to an S&P Global presale report, nearly $1.1B of the CMBS debt will pay off existing loans. An additional $23.3M is earmarked for tenant improvements, while $15M will go toward closing costs. The remaining balance enables Durst to cash out $146M in equity.
The CMBS structure includes a $719M senior tranche rated AAA by S&P, citing Durst’s “experience and financial strength.” The loan carries a 6.1% interest rate.
Upgrades And Valuation
Following the departure of Condé Nast and law firm Skadden, Durst invested $150M in capital improvements. The upgrades included converting the iconic Frank Gehry-designed cafeteria into a new amenity center with a Well& restaurant.
The building now boasts a diverse tenant roster including Nasdaq, Venable, and BMO Capital Markets. It also houses 72K SF of retail — including H&M’s US flagship — and large-scale digital signage facing Broadway.
The property sits on a city-owned ground lease, with an option for Durst to purchase the site outright in 2027. Current in-place rents average $116 PSF, and the tower is valued at approximately $2.3B based on its loan-to-value ratio.
CMBS Market Bounces Back
Durst joins a growing list of institutional landlords turning to the rebounding CMBS market to refinance prime Manhattan assets. Peers like RFR, Tishman Speyer, and Ivanhoé Cambridge have all closed billion-dollar CMBS deals this year.
Lenders originated $59.5B in CMBS loans during the first half of 2025, according to Trepp. This marked the most active half-year since before the Great Financial Crisis and points to renewed investor confidence in stabilized Class-A office towers.
