SL Green Secures $1.25B Mortgage Extension

According to Commercial Observer, SL Green Realty Corp. (SLG), New York City’s largest office REIT, secured a $1.25B mortgage extension for One Madison Avenue.

Historic Landmark

One Madison Avenue has a storied past, first opening in 1893 with a clock tower that briefly made it the tallest building in the world.

Over the years, it evolved, including a 1953 reconstruction in limestone and granite. SL Green purchased the building in 2005 and initiated its transformation in 2020 during the pandemic’s peak.

The $2.3B project added an 18-story glass extension, creating 500 KSF of new space while thoroughly modernizing the original structure. The renovation concluded in September 2023, ahead of schedule.

Managing Extensions

SL Green secured a loan extension from a consortium of 14 banks led by Wells Fargo (WFC). The agreement extends the final maturity date to November 2027 while maintaining a 3.1% interest rate over SOFR. 

This flexibility provides stability as SL Green focuses on leasing the remaining space and maximizing returns.

Tenant Lineup

One Madison Avenue’s tenant roster features prominent names like IBM, Coinbase, and Franklin Templeton, as well as lifestyle-focused additions such as Chelsea Piers Fitness. 

Amenities include a rooftop garden overlooking Madison Square Park and a fine dining restaurant, La Tête d’Or, by Michelin-starred chef Daniel Boulud.

Serious Momentum

SL Green has reported strong financial results in 2024, including $437.9M in funds from operations over the first nine months—a $146M YoY increase. 

The REIT expects its overall portfolio occupancy to hit 92.5% by year’s end, surpassing its prior performance.

Why It Matters

SL Green’s successful mortgage extension and the transformative renovation of One Madison Avenue highlight its resilience in a challenging office market. 

With solid financial performance, high-profile tenants, and iconic properties, the REIT is poised for continued growth and market leadership in the Big Apple.