BXP has appointed Will Silverman and Gary Phillips of Eastdil Secured to market the ground lease for 7 Times Square. This is considered an indicator of current interest in office properties in Times Square. BXP expects a sale price between US$700 million and US$750 million. A source close to the deal mentioned an amount just over US$700 million.
This price exceeds the US$684 million paid by Norges Bank Investment Management in 2013 for a 45 per cent stake in the property, which primarily comprises Class A office space. At the time, the building's total value was re-evaluated at US$1.52 billion. The bidding deadline for the current sale is fast approaching.
The tower, built in 2004 as part of the overall Times Square development, spans 1.2 million square feet. Also known as Times Square Tower, it is based on a 99-year ground lease that began on 18 April 1990 and includes an option to purchase the land from the city. The sale of this ground lease is seen as a test for the local market, which is characterised by high tourist density. Adjacent projects illustrate the area's transformation: the neighbouring 5 Times Square is being converted into residential units by RXR, while SL Green Realty is considering repurposing 1515 Broadway into a hotel.
The marketing news was first reported by Green Street’s Real Estate Alert. According to their report, the 91 per cent occupied tower has approximately 100,000 square feet of available space on the most valuable upper floors. According to Green Street’s Sale Comps Database, since 2020, only nine office buildings have recorded single-owner transactions valued at a minimum of US$700 million. Two of these deals occurred after 2022, including the sale of 590 Madison Avenue for US$1.08 billion to RXR and Elliott Investment Management, and SL Green’s acquisition of the Park Avenue Tower at 65 East 55th Street for US$720 million. Both transactions were marketed by Eastdil.
Designed by David Childs of Skidmore Owings & Merrill, 7 Times Square was constructed by the company then known as Boston Properties (now BXP) on an entire city block. This block is bounded by West 41st and West 42nd Street, Broadway, and Seventh Avenue. It was technically challenging to build, as it is completely surrounded by subway lines and provides an important entrance to the underground complex. Electronic billboards cover much of the first four floors, while a 'Sky Lobby' for offices is located on the fifth floor. Amenities include conference rooms, a client lounge, and a cafe. Furthermore, there is the potential to increase revenue from billboards through digitisation, according to Real Estate Alert.
Standing 724 feet high with 47 storeys, 7 Times Square overlooks One Times Square, known as the Ball Drop Tower, thus offering excellent views of the New Year’s Eve festivities. Tenants at 7 Times Square include the newly signed data platform Snowflake with 83,000 square feet, KnitWell Group with 246,000 square feet – which continues to operate an Ann Taylor Loft store in the retail area – as well as holding company GSI Exim America and law firms Friedman Kaplan and Norris McLaughlin.
As part of a series of strategic disposals in 2025 and 2026, BXP has already completed sales exceeding US$1.1 billion. These include properties in Boston, San Francisco, and Washington, D.C., residential properties in Cambridge, Mass., and Reston, Va., as well as non-core office and life sciences properties in Needham, Mass., and South San Francisco. In March, the company stated it expected US$1.9 billion from such sales.
Owen Thomas, Chairman and CEO of BXP, explained that their clearly articulated business plan to lease space and improve occupancy, sell selected assets, and reinvest in prime workplace developments would enable BXP to increase Funds from Operations per share (FFO/share), reduce debt, and improve portfolio quality over time. He added that they had made very strong progress in implementing all aspects of the plan over the last six months.
In May, the company agreed to sell the Sumner Square complex in Washington, D.C., for US$63 million, but will record total losses of US$35 million there. In New York, BXP is also developing the new 343 Madison Avenue, which is currently 56 per cent leased, with insurance company C.V. Starr occupying 275,000 square feet and law firm McDermott Will & Schulte taking a further 150,000 square feet. Silverman declined to comment on the marketing of 7 Times Square. BXP and Norges did not immediately respond to enquiries.
