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Financial pressure is increasing at SL Green‘s 1515 Broadway property in Times Square after a credit downgrade tied to uncertainty over the asset’s future use, following the rejection of a bid for a New York City casino license at the site.
The 57-story, 1.7 million-square-foot tower had been positioned as the site of a proposed $5.4 billion casino project involving Caesars Entertainment, Roc Nation, and Live Nation. That proposal was rejected by a community advisory committee in September, removing a potential revenue stream tied to gaming operations.
According to S&P Global Ratings, subsequent plans to reposition the property remain unclear. “While the sponsor, SL Green, announced a revised plan in December 2025 to convert the building into a hospitality and general entertainment venue without a casino, the feasibility and funding of the proposal are uncertain,” the agency said in a report.
S&P lowered its ratings on five classes of commercial mortgage pass-through certificates linked to the property. Caesars no longer has involvement with the site.
Tenant shifts add pressure on occupancy
The building’s outlook is also affected by tenant concentration risk tied to Paramount Global, currently the sole office occupant.
“Since our last review, in September 2025, the sole office tenant, Paramount Global, which indicated that it will move its headquarters to Los Angeles after merging with Skydance Media, has announced additional layoffs, and will continue to reduce its workforce,” S&P stated.
The merger with Skydance Media is expected to reduce the tenant’s space requirements, raising the possibility that the property could lose full occupancy.
S&P estimated the building’s value at $500 million, less than half of its pre-pandemic level.
Refinancing risk and loan maturity timeline
The property carries a mortgage balance of $676.2 million, down from an initial $900 million loan. The debt is scheduled to mature in March 2028 following a prior extension.
S&P indicated that refinancing may present challenges. “The sponsor may continue to encounter difficulty refinancing the loan or sell the property by the loan’s fully extended maturity date in March 2028,” the agency said.
“The sponsor had failed to pay off the loan at the original maturity date in March 2025. While the loan was modified and extended, we also considered that, per the transaction documents, the master or special servicer may extend the loan’s maturity no later than five years prior to the rated final distribution date, which is in March 2033,” S&P added.
Strategic repositioning without gaming
Following the casino bid rejection, SL Green has explored alternative uses for the property. The absence of one of the three downstate gaming licenses — awarded instead to Bally’s Corporation, Hard Rock International, and Resorts World New York City — removes the possibility of a Manhattan-based gaming venue.
Without a casino component, the company may need to allocate capital toward repositioning the asset to maintain competitiveness in the Times Square market.
In the meantime, SL Green has continued broader portfolio activity while addressing the situation at 1515 Broadway. The company has initiated plans to sell approximately $2.5 billion in assets while pursuing around $1 billion in acquisitions and development opportunities.
Leadership changes have accompanied the strategy. Longtime investment chief Harrison Sitomer was promoted to president, overseeing asset sales as well as new investments.
Leasing activity across the portfolio has also been active, with more than 900,000 square feet of agreements signed in the first quarter.
While company executives have expressed confidence in the Times Square asset, the combination of tenant uncertainty, refinancing risk, and the loss of a gaming-driven redevelopment path continues to weigh on the property’s outlook.