Jay-Z and Caesars’ $5 Billion NYC Casino Site Facing ‘Murky’ Future After Credit Downgrade

• The building is owned by SL Green
• Times Square casino bid was rejected last year
• Site is already reeling from mass layoffs at broadcaster CBS ahead of Paramount/ Skydance merger

Financial pressure is mounting at 1515 Broadway after a credit downgrade hit the iconic Manhattan tower following the rejection of Jay-Z and SL Green’s splashy bid for a New York City casino license.

SL Green’s (NYSE: SLG) 1515 Broadway, located in Times Square, was where the landlord, Caesars and Jay-Z’s Roc Nation hoped to build a $5.4 billion gaming venue, but that plan was rejected by a community advisory committee (CAC) last September.

Financial ratings agency S&P Global Ratings views the real estate investment trust’s (REIT) plans for the property as murky.

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,” said the ratings agency in a recent report.

S&P lowered its ratings on five classes of commercial mortgage pass-through certificates tied to the Times Square property. Caesars has no remaining ties to the building.

1515 Broadway Could Have Used Caesars NYC Casino

Soon after the CAC rejected the Times Square casino proposal, SL Green executives expressed hope that the bid could be resuscitated down the road, but that didn’t happen.

“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,” adds S&P.

Looked at another way, a Caesars casino in New York City could have been just what the doctor ordered for 1515 Broadway. Now, SL Green faces the specter of needing to devote significant capital to sprucing up the property to keep it competitive.

1515 Broadway Outlook Uncertain

SL Green previously took out a fixed-rate, partially amortizing mortgage loan of $900 million on 1515 Broadway and while that tab has been trimmed to $676.2 million, S&P says the REIT may be faced with limited refinancing options, if those are needed.

“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,” said the ratings agency.

“The sponsor had failed to pay off the loan at the original maturity date in March 2025. While the loan was modified and extended (see below), 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.