SL Green, partnering with Caesars Entertainment for a proposed Times Square casino, seeks an extension on a $743 million loan for 1515 Broadway. The loan entered special servicing in October, though the property maintains strong performance metrics.

According to Morningstar, the property is fully leased and generating strong cash flow. SL Green remains current on mortgage payments, with the loan due in March. The proposed $4 billion casino hotel project, announced in October 2022, includes partnerships with Caesars Entertainment and Jay-Z's Roc Nation.

The REIT carries $10.1 billion in net debt, including unconsolidated joint venture debt, offset by $0.4 billion in cash and investments. While the current interest rate on 1515 Broadway sits below 4%, refinancing could result in higher rates, though potential Federal Reserve rate cuts may help mitigate increases.

Paramount, the building's primary tenant, recently announced layoffs and faces an ongoing takeover battle, potentially complicating the property's future. The proposed casino would replace the Minskoff Theater, current home to "The Lion King."

New York regulators aren't expected to award downstate casino licenses until late 2025, making loan management crucial for SL Green's immediate future.

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