Aug 7 (Reuters) - New York City property developer The

Durst Organization sealed one of 2025's largest Manhattan office

loans for a landmark Times Square skyscraper on Wednesday,

according to Rosenberg + Estis, the law firm that represented

the developer.

The family-run property owner closed a $1.3 billion

commercial mortgage-backed security on One Five One, a 48-story,

Class A office building formerly known as 4 Times Square. The

proceeds will go towards funding tenant improvements and capital

expenditures, among other uses, according to Rosenberg + Estis.

In the years following the COVID-19 pandemic, which

wrought devastation on the U.S. office market, The Durst

Organization has brought a diverse range of major new tenants to

the building, including social media giant TikTok and financial

services firm Nasdaq.

One Five One was designed by architecture firm Fox & Fowle,

now known as FXCollaborative, and was previously home to

publisher Conde Nast until 2014, and international law firm

Skadden Arps until 2020.

Wells Fargo ( WFC ), JPMorgan ( JPM ) and Bank of America ( BAC )

co-originated the $1.3 billion CMBS. The building was

previously financed by a $650 million CMBS and a $900 million

refinancing provided in 2019 by JPMorgan ( JPM ) and Wells Fargo ( WFC ).

Rosenberg + Estis called the immense package a major

milestone for the New York office market's recovery.

"This deal sold the bonds very quickly. It pre-sold,

basically," said Eric Orenstein, a member of Rosenberg + Estis's

transactions team.

Orenstein said the $1.3 billion ultimately funded was well

above the amount originally sought by The Durst Organization.

"There is tremendous demand for Class A assets for

well-known sponsors that are well-respected in the community,"

he added. "It's a good sign for the market generally."

The $1.3 billion loan carries a 5.865% interest rate and

matures on August 6, 2030. The financing arrangement was based

on an estimated property valuation of $2.3 billion and a

loan-to-value ratio of 56.5%.

"Over the last few years, there was a broad pullback from

commercial real estate lending, particularly office buildings.

But in New York City, the strength of the Class A office market

is now undeniable," said Douglas Durst, chairman of The Durst

Organization, in a written statement.

"The capital markets are recognizing that reality and

showing a renewed appetite for exposure to the sector," Durst

added.

Wells Fargo ( WFC ) declined to comment, while JPMorgan ( JPM ) did not

immediately return a request for comment.

"The strong reception by the CMBS reemphasizes the strength

of the NYC office market for buildings that are highly

amenitized, tenant friendly, proximate to transportation hubs

and have best-in-class ownership," Leland Bunch, head of capital

markets and banking for Bank of America's ( BAC ) real estate structured

finance group, told Reuters in an emailed statement.