Palace Theatre Developers Seek $1 Billion for Property Renovation

The developers responsible for the upcoming renovation of the iconic Palace Theatre are currently seeking a $1 billion debt-and-equity package for their redevelopment of the property 1568 Broadway, which houses the historic theater.

Maefield Development, Fortress Investment Group and L&L Holding Company are looking for an investment partner and construction lender to contribute the additional funds.

The $2.4 billion renovation will elevate The Palace Theatre 29 feet above the ground, creating a downstairs space covering 10,000 square feet.

The renovation will also include the expansion of the Doubletree Hotel located within the property, and the addition of retail space and LED signage.

The firms plan to begin construction in the summer of 2018 and hope to complete the project by 2021.

The renovation of 1568 Broadway has been in the works since 2016 when New York City approved the plan to raise the historic theatre.

The Palace Theatre is currently home to the splashy new hit, Spongebob Squarepants the Musical! There has been no word as to how the renovation could affect a running production.