At $3B, SL Green’s One Vanderbilt Secures Largest Ever SASB CMBS

SL Green Realty has tapped the CMBS market for permanent financing for its One Vanderbilt tower. The REIT has secured a $3 billion 10-year, fixed-rate loan securitized in a single asset, single borrower agented CMBS transaction.

The agents were a consortium of financial institutions, led by Wells Fargo Bank, and Goldman Sachs Bank, that also included Bank of America, Bank of China, Bank of Montreal, Deutsche Bank, JP Morgan Chase Bank, Barclays Capital Real Estate. and Citi.

The new financing carries a stated coupon of 2.855%, equivalent to a rate of 2.947% inclusive of hedging costs, and replaces the previous $1.75 billion construction facility with an outstanding balance at the time of payoff of approximately $1.54 billion. One Vanderbilt is currently 89% leased.

According to Robert Schiffer, managing director at SL Green Realty, this is the largest ever single building securitization. “Once again, One Vanderbilt is setting the benchmark as one of the country’s premier office towers,” he said in prepared remarks. 

The 1.7 million-square foot skyscraper has been signing on tenants at a rapid clip this year, despite the doldrums the New York office market is currency in. 

Building tenants include TD Securities, The Carlyle Group, KPS Capital Partners, Oak Hill Advisors, InTandem Capital, SageWind Capital, Sentinel Capital Partners, Greenberg Traurig, McDermott Will & Emery and many others. 

Chatham Financial acted as an advisor to SL Green on the transaction.

One Vanderbilt Avenue is owned in a joint venture between SL Green, National Pension Service of Korea and Hines Interests.