SL Green Receives $3B Loan for Refinancing of One Vanderbilt Office Building in Manhattan

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One Vanderbilt in Manhattan was 89 percent leased at the time of the loan closing.

NEW YORK CITY — Locally based real estate giant SL Green Realty Corp. (NYSE: SLG) has received a $3 billion loan for the refinancing of One Vanderbilt, a 1.7 million-square-foot office tower in the East Midtown neighborhood of Manhattan.

Designed by Kohn Pederson Fox Associates and located across the street from Grand Central Station, One Vanderbilt rises 77 stories and 1,401 feet, making it the tallest building in Midtown Manhattan. SL Green developed the property, which carried a price tag of $3.3 billion, in partnership with Houston-based Hines and the National Pension Service of Korea.

One Vanderbilt includes 10,000 square feet of ground-floor retail and restaurant space. In terms of tenant amenities, the building features a 30,000-square-foot space with meeting areas, a club-style lounge, curated food offerings and an outdoor terrace that faces Grand Central.

A consortium of financial institutions led by Wells Fargo and Goldman Sachs provided the debt, which was structured with a 10-year term and all-in fixed interest rate of approximately 2.94 percent.

Other lenders that contributed to the financing included Bank of America, Bank of China, Bank of Montreal, Deutsche Bank, JPMorgan Chase, Barclays Capital Real Estate Inc. and Citi. Chatham Financial acted as an advisor to SL Green on the transaction.

When the development team officially opened One Vanderbilt in September of last year, the building was approximately 70 percent preleased, mainly to an array of financial services users that included TD Securities, The Carlyle Group and KPS Capital Partners. Occupancy now sits at 89 percent.

Other tenants include law firms Greenberg Traurig and McDermott Will & Emery, as well as publicly traded REIT MFA Financial Inc., boutique capital markets advisory firm Hodges Ward Elliott and full-service real estate firm Walker & Dunlop. In addition, SL Green has relocated its headquarters office to a 70,000-square-foot space within One Vanderbilt.

The stock price of SL Green, which began developing One Vanderbilt 20 years ago with the purchase of 317 Madison Avenue, closed at $80.73 per share on Monday, June 28, following the announcement of the loan closing. The New York City-based development and investment firm’s stock price is up roughly 66 percent from $48.63 per share a year ago.

Taylor Williams

Content Partners
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‣ Lee & Associates
‣ Lument
‣ NAI Global
‣ Walker & Dunlop

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