SL Green Receives $ 3 Billion Loan To Refinance One Vanderbilt Office Building In Manhattan



One copy of Vanderbilt-Manhattan

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

NEW YORK. Local real estate giant SL Green Realty Corp. (NYSE: SLG) received a $ 3 billion loan to refinance One Vanderbilt, a 1.7 million square foot office building in East Midtown, Manhattan.

Designed by Kohn Pederson Fox Associates and located across the street from Grand Central Station, One Vanderbilt rises 77 floors and 1,401 feet, making it the tallest building in midtown Manhattan. SL Green developed this $ 3.3 billion facility in partnership with Houston-based Hines and the National Pension Service of Korea.

One Vanderbilt includes 10,000 square feet of retail space and restaurants on the ground floor. In terms of tenant convenience, the building features 30,000 square feet of space with meeting areas, a club-style lounge area, carefully selected meals and an outdoor terrace overlooking Grand Central.

A consortium of financial institutions led by Wells Fargo and Goldman Sachs provided debt that was structured at a 10-year maturity with a fixed interest rate of approximately 2.94 percent.

Other lenders who 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 advised SL Green on the deal.

When the development team officially opened One Vanderbilt last September, approximately 70 percent of the building was leased, primarily to a number of financial services users, including TD Securities, The Carlyle Group and KPS Capital Partners. The occupancy rate is now 89 percent.

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

SL Green, which started development at One Vanderbilt 20 years ago with the purchase of 317 Madison Avenue, closed at $ 80.73 a share on Monday, June 28, following the announcement of the loan. The share price of a New York-based real estate development and investment company is up about 66 percent from $ 48.63 a share a year ago.

Taylor Williams


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