"The financing was accomplished during one of the most turbulent times in the credit market history and in a severe economic downturn," says Morton Holliday, managing director of C&WSG, in a release. "It is heartening to note that even in these distressed times financing is still available for the deals that have the right mix of quality sponsor, quality building, quality location, and conservative underwriting. The Graybar Building financing met all of these criteria."

According to S.L. Green's July 28 8-k filing, the current financing on 420 Lexington carries an 8.44% coupon, with an outstanding principal of $108.6 million as of June 30. It is due to mature in November 2010. A news release from the REIT says the TIAA financing, provided at a 7.5% fixed rate, matures in 2016 and features two, one-year extension options.

S.L. Green CEO Marc Holliday says in the release that the deal reflects "the strong relationship" that his company has built up over the years with TIAA, "both as a lender and as an investment partner. We're pleased to have that continue." He adds, "It also follows immediately on the heels of our 625 Madison Ave. refinancing announced just last week. With these two transactions, featuring attractive rates of 7.5% and 7.22% respectively, we have addressed near-term maturities and generated more than $65 million of net cash proceeds, which will be utilized to further manage our near-term debt obligations."