The TSX Broadway project in Times Square, New York, has encountered significant challenges, leading to a shift in management. Goldman Sachs and a group of lenders have taken control of the project after developers Fortress Investment Group and L&L Holding Co. failed to repay their loans, as reported by Bloomberg.

SL Green Realty has been appointed to manage the project, which may involve preparations for a potential sale. The ambitious 46-story tower, located at 1568 Broadway, features 75,000 square feet of retail space, a 669-room hotel, a Hilton-branded Tempo hotel, and the Palace Theatre. A standout feature is a 4,000-square-foot stage elevated 30 feet above the street, integrated with a massive LED system that is the largest transactional sign in Times Square.

Goldman Sachs initially provided a $1.1 billion construction loan in 2018, marking its role as the senior lender. In 2020, the developers secured an additional $100 million in EB-5 funding, which constituted only about 4% of the project's total budget. SoftBank Group, led by Masa Son, also contributed approximately $200 million during the early stages of development.

However, signs of financial distress emerged last summer when the developers defaulted on a $543 million mezzanine loan. The lender, U.S. Immigration Fund, granted an extension, but the loan required restructuring. Reports indicated that the lender was considering selling the debt or seeking a new partner to stabilize the situation.

Construction on the project began in January 2019, with an anticipated completion date in 2023. Although the project was reported as completed in June, the financial difficulties have led to a significant change in its management and future direction.