By IvyLee Rosario
New York City—Reading International Inc. has secured $57.5 million in construction financing to fund the non-equity portion of the redevelopment of 44 Union Square in New York City. The facilities consist of $50 million in loans from Bank of the Ozarks to the wholly-owned subsidiary of Reading that is doing the redevelopment and a $7.5 million mezzanine loan from an affiliate of Fisher Brothers to the parent of that subsidiary.
The redevelopment of this building will add 23,000 square feet of rentable space to the current square footage of the building, totaling 73,322. The new building will be mixed-use, offering the lower, ground, second and third levels 40,760 square feet of retail space, while the fourth through sixth floors will house 28,077 square feet of dedicated office space. Located across from Union Square’s Greenmarket, 44 Union Square was previously a theater, offering classroom spaces and a 499-seat venue from 1994 until early 2016. The landmark exterior will be preserved, while adding a two-and-a-half-story protruding glass dome at the top.
“We appreciate the Bank of the Ozarks’ and Fisher Brothers’ recognition of this unique, historic and one-of-a-kind property,” said Margaret Cotter, executive vice president, real estate management & development, New York City, in prepared remarks. “The financing facilities with the Bank of the Ozarks and Fisher Brothers represent another step forward for the development and we appreciate their support, as well as the support of our placement agent, RM Capital Management LLC and our development manager, Edifice Real Estate Partners LLC. As the development of this historic building into a prime retail and office destination continues, we believe this property will drive significant value to our real estate portfolio.”
The project is scheduled for completion by quarter one of 2018.
Image courtesy of 44 Union Square