The real estate landscape of Times Square could be facing a significant transformation with the possibility of a new casino entering the scene. Manhattan's SL Green Realty has advanced a proposal for a Las Vegas-style gaming establishment named Caesars Palace Times Square, to be located at 1515 Broadway. Despite their progress, not everyone is rolling the dice in their favor. Andy Gottesman, principal of The Hippodrome at 1120 Sixth Ave., has expressed his disapproval, aligning himself with the No Times Square Casino coalition, according to Crain's New York. "I just don't think that high-quality office tenants are going to want to be in close proximity to a casino," Gottesman told Crain's New York in their published interview.
While opposition mounts from certain quarters, SL Green seems to be gaining ground with the extension of a substantial $742.8 million mortgage on the proposed casino's site, running through March 2028. The company secured this extension after moving the debt to special servicing, marking an affirmative step toward their ambitions, as reported by the Commercial Observer. Brett Herschenfeld, SL Green's vice president of retail, noted the move as reflective of the strength of the Midtown Manhattan office market and a boon to their Caesars Palace Times Square pursuit.
The proposal by SL Green, which includes a partnership with Caesars Entertainment and Jay-Z’s Roc Nation, suggests turning the 54-story tower into a hub amalgamating a 250,000-square-foot casino with a 950-room hotel. Already, SL Green can list supporters from the adjacent business community who believe the casino will invigorate Times Square's economy. "The Times Square business community overwhelmingly supports Caesars Palace Times Square," claimed project spokesman Jack Lynch, illustrating the sentiment through the reported backing from 10 building owners representing 6.2 million square feet of commercial real estate as told to Crain's New York.
On the flip side of this magnitude of support, the historically rich and culturally prized theater community remains apprehensive. The Broadway League, a local powerhouse representing theater owners and producers, appears to be leading the resistance, looking to protect the district's theater-centric culture from potential casino-related disruptions. This clash of interests has placed SL Green's proposal under undeniably intense scrutiny, even while other candidates gunning for one of the three prized state licenses have so far evaded similar contention. According to Crain's New York, Gottesman's joining forces with the opposition stems from a desire for a "healthy" Midtown community, informed by a less-than-stellar experience his business had in Atlantic City.
The state has laid down a timeline where bids must be placed by June 27, 2025, with neighborhood committee votes concluding by September 30. Final decisions from the state’s Gaming Facility Location Board are expected prior to December 1, indicating a critical upcoming period for all involved parties in shaping the future of Times Square's dynamic ecosystem.
