Extell Lands $1.3B Loan for Times Square Supertall “The Torch”
Extell Development has finally locked in its $1.25 billion construction financing for a long-awaited Times Square supertall.
Gary Barnett’s firm finalized a $1.1 billion construction loan from banks led by JPMorgan. It also secured a $150 million mezzanine loan from U.S. financial institutions this week, according to a filing on the Tel Aviv Stock Exchange.
Extell has completed 40 out of 60 stories of the hotel and retail tower at 740 Eighth Avenue, known as “The Torch,” which also has a 250-foot amusement ride. The firm revealed in March 2025 that it signed a memorandum of intent with an unnamed lender for about $1.3 billion in financing, Bisnow reported.
The firm disclosed in its recent filing on the Tel Aviv Stock Exchange that its senior loan has a rate of SOFR + 4.0 percent and its mezzanine financing has a rate of 6.79 percent.
Extell also disclosed its hotel portion will total 1,800 rooms, up from a previously reported 825 rooms, making it among the largest hotels by room count in New York City.
The developer has not yet named its hospitality partner, but said it reached a 40-year franchise deal with an international hotel chain. The hotel chain will provide $60 million in financing for the project.
Extell reached a 15-year deal with a restaurant group for the building’s restaurants and bars at the hotel and observation deck, according to the filing with the Tel Aviv Stock Exchange.
The company expects its stabilized net operating income from the project to be $250 million to $270 million a year, and said it does not plan to bring in more equity to finish the project because it obtained construction financing.
The Torch will have 130,000 square feet of advertising space, 94,000 square feet of food and beverage space, three observation decks, and a drop tower ride in addition to 1,800 hotel rooms.
Read more
Extell: 740 Eighth Ave project with thrill ride is legal
What’s Gary Barnett’s next big move?
