SL Green Closes $1.25B Construction Loan for One Madison Avenue

SL Green and its joint venture partners, the National Pension Service of Korea and Hines, have closed on a $1.25 billion construction loan for One Madison Avenue. Wells Fargo, TD Bank, Goldman Sachs, Bank of America, Deutsche Bank and Axos Bank are among the lenders. 

The facility, which SL Green says is New York City’s largest office construction financing in 2020, has a term of up to six years and bears interest at a floating interest rate of 3.35% over LIBOR, with the ability to reduce the spread to as low as 2.50% upon achieving certain leasing and completion milestones.

With financing in place, construction will now begin on the 1.4 million-square-foot development that will encompass a full block and reach 27 stories. One Madison Avenue is in the Midtown South submarket, located next to Madison Square Park between Park and Madison Avenues and East 23rd and East 24th Streets. 

The owners have tapped the design and development team that recently delivered One Vanderbilt Avenue—Hines, Kohn Pedersen Fox, AECOM Tishman and National Pension Service of Korea—for the project, which is expected to produce more than 3,000 new construction jobs over the next four years.

The project illustrates SL Green’s commitment to and belief in New York City, says CEO Marc Holliday, in prepared remarks. “Despite the headwinds presented by current and temporary challenges, we remain focused on boosting the New York City economy by creating thousands of construction jobs and bringing a new, best-in-class office tower to the highly sought-after Flatiron/Midtown South submarket for the first time in a decade.”