Published on: April 22, 2026, 06:10h.
Updated on: April 22, 2026, 06:10h.
- The property is under the ownership of SL Green
- The proposal for a casino in Times Square was denied last year
The New York building that Caesars Entertainment (NASDAQ: CZR) aimed to transform into a casino is currently facing credit rating downgrades, as a prominent rating agency assesses the future of the facility with a high-profile tenant set to leave.
SL Green’s (NYSE: SLG) 1515 Broadway, situated in Times Square, was the site envisioned by Caesars and Jay-Z’s Roc Nation for a $5.4 billion gaming facility, but the community advisory committee (CAC) rejected the proposal last September. S&P Global Ratings now views the real estate investment trust’s plans for the property as unclear.
S&P remarked, “Although SL Green unveiled a modified project in December 2025 to transform the building into a hospitality and entertainment destination without a casino, the project’s viability and funding status remain uncertain.”
S&P has lowered its ratings on five categories of commercial mortgage pass-through certificates associated with the Times Square site. Caesars’ connection to the property has been severed.
Potential Gains from a Caesars NYC Casino
After the CAC turned down the casino initiative for Times Square, SL Green officials expressed optimism about potentially resuming the bid in the future, a hope that has unfortunately not materialized.
The New York regulatory board awarded casino licenses to Bally’s, Hard Rock International, and Resorts World New York, ensuring that no new gaming establishments will emerge in Manhattan. Compounding the issues for 1515 Broadway is the merger of Paramount with Skydance, leading to job cuts at CBS, a significant tenant in the building.
S&P notes, “Since our last evaluation in September 2025, Paramount Global, the sole office occupant, has declared it will relocate its headquarters to Los Angeles following its merger with Skydance Media, and has announced further layoffs, continuing to downsize its workforce.”
A casino by Caesars in New York City might have been the ideal solution for 1515 Broadway. Now, SL Green is confronted with the necessity of investing considerable capital to enhance the property’s appeal and maintain its competitive edge.
Uncertain Future for 1515 Broadway
Previously, SL Green obtained a fixed-rate, partially amortized mortgage loan amounting to $900 million for 1515 Broadway, which has since been reduced to $676.2 million. However, S&P indicates that the REIT may face restricted refinancing opportunities, should they become necessary.
“The sponsor might continue to face challenges when it comes to refinancing the loan or offloading the property before the full maturity date of the loan in March 2028,” S&P disclosed. “The sponsor was unable to settle the loan at its initial maturity in March 2025, leading to an extension. According to the transaction guidelines, the master or special servicer has the ability to extend the loan’s maturity no later than five years before the designated final distribution date, which is slated for March 2033.”