Extell Lands $1.25B for Massive Times Square Hotel Tower

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Extell Secures $1.25B for Massive Times Square Hotel Tower

Extell Development has secured $1.25 billion in financing to advance The Torch, a 60-story mixed-use tower poised to become one of New York City’s largest hotels.

Financing takes shape: The $1.25 billion package includes a $1.1 billion construction loan led by JPMorgan and $150 million in mezzanine debt, according to a filing cited by The Real Deal. Construction is already well underway, with Extell having completed 40 stories.

A hotel of outsized scale: The Torch is planned to feature 1,800 hotel rooms, putting it among New York City’s largest hotels by room count. An unnamed international hotel brand has signed a 40-year franchise agreement and will contribute $60 million toward the project.

More than just rooms: The development will combine hospitality, entertainment, dining and advertising, with plans for 130,000 square feet of advertising space, a drop-tower ride, three observation decks and 94,000 square feet of food-and-beverage space. Extell has also signed a 15-year operating agreement with a restaurant group covering the restaurants, bars and observation deck.

Big revenue expectations: Extell projects the completed project will generate $250 million to $270 million in annual net operating income, underscoring the developer’s bet on Times Square’s continued ability to support large-scale tourism and experiential real estate.

The broader Manhattan picture: The financing comes amid renewed activity across Manhattan. Separately, Cain acquired The Dominick Hotel in SoHo, formerly Trump SoHo, for $175 million in October 2025.

➥ THE TAKEAWAY

Betting on spectacle: The Torch is a bet on spectacle at skyscraper scale. With hotel rooms, observation decks, dining, advertising and an amusement attraction packed into one project, Extell is aiming to turn Times Square foot traffic into multiple revenue streams—not just another hotel check-in.

➥ Manhattan and Brooklyn rents continued climbing as sharply lower new lease activity and shrinking inventory suggest more tenants are renewing rather than moving. 

➥ Manhattan multifamily rents rose 5.6% year over year through June as strong demand, high occupancy and limited construction fueled growth, while investment sales reached $582M in the first half of 2026. 

➥ Lower Manhattan’s office market is recovering, with availability falling to 15.2% and Class A asking rents reaching a record $68.15/SF, though leasing momentum still trails Midtown.

➥ Diptyque is relocating and expanding its Manhattan headquarters with an 18,017-SF, 10-year lease at 16 East 34th St., highlighting continued strength in New York City’s office market.

➥ Coney Island Prep signed a 39-year, 45,190-SF leasehold agreement at 773 Neptune Avenue to develop a new high school for up to 500 students by summer 2027.

➥ 26 North signed an 84,000-SF, 11.5-year lease at 40 West 57th Street, relocating from 600 Madison Avenue as Manhattan’s office market remains on pace for its strongest year since 2000.

Net absorption registered -0.2 MSF through the first half of the year, as multiple large blocks added to market in May skewed absorption negatively. Leasing demand remains robust, reaching 24.7 MSF for 1H26, marking the strongest first-half activity since 2019.

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