NEW YORK CITY — Real estate investment trust SL Green Realty Corp. (NYSE: SLG) has closed on a $900 million mortgage refinancing for 1515 Broadway, a 2 million-square-foot office tower in Times Square.
The new 12-year, 3.93 percent fixed-rate mortgage financing replaces the former $775 million mortgage loan. The refinancing follows the April 2012 lease renewal by Viacom of 1.6 million square feet at the tower through 2031. SL Green will recognize approximately $116 million in net proceeds from the deal.
“Our ability to execute long-term, fixed-rate financing at historically low rates is a significant achievement and reflects both this property’s strength as well as the continuing positive evolution of Times Square,” says Andrew Mathias, president of SL Green.
1515 Broadway has towered above Times Square since 1972 and is the world headquarters for Viacom, which owns MTV. A $60 million renovation of the 56-story office tower was completed in 2010. The new design includes a stainless steel storefront and canopy, with new gray Pietra di Bedonia stone paving. The new lobby features a custom-glass art wall.
“The long-term renewal of the Viacom lease, coupled with our redevelopment of the building’s lobby, common areas, retail space, and the introduction of LED signage, has created significant value,” says Mathias.
SL Green Realty Corp., New York City's largest office landlord, is a fully integrated REIT that is focused primarily on acquiring and managing Manhattan commercial properties. As of Dec. 31, SL Green owned interests in 85 Manhattan office and retail properties totaling 40.8 million square feet.
SL Green’s stock price closed at $82.70 per share on Monday, up from $75.69 a year ago.