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BXP markets 7 Times Square ground lease with asking price $700M-$750M
The 1.2 million square-foot tower trades on a 99-year ground lease that began April 18, 1990, and includes an option to buy the site from the city.
BXP has hired Eastdil Secured to market the 7 Times Square ground lease, Commercial Observer reported, framing the transaction as a gauge of demand for prime Times Square office assets. BXP expects to ask between $700 million and $750 million, with a source close to the deal saying the price is just north of $700 million. The sale is tied to the tower known as Times Square Tower, a 1.2 million square-foot building developed in 2004 as part of the broader Times Square redevelopment. The property sits on a 99-year ground lease that commenced on April 18, 1990, and includes an option to purchase the site from the city. Commercial Observer said bids are due soon, and noted the lease sale could test the local market as nearby assets shift toward other uses, including RXR’s residential conversion at 5 Times Square and SL Green’s review of turning 1515 Broadway into a hotel.
The report also pointed to the tower’s occupancy, saying it is about 91 percent occupied and has roughly 100,000 square feet available at the most valuable top floors, citing Green Street. Green Street’s Sale Comps Database, as summarized by Commercial Observer, found only nine single-property office buildings traded for at least $700 million since 2020, with two of those deals occurring after 2022.