SL Green Realty Corp. and a U.S. affiliate of Mori Trust Co. have secured a $2 billion refinancing of 245 Park Ave., a 44-story office tower spanning the entire block between East 46th and East 47th in Midtown Manhattan. The five-year, fixed-rate financing carries an interest rate of 6.52% and replaces the property’s previous $1.768 billion of mortgage and mezzanine financing, SL Green announced. The single-asset, single-borrower CMBS execution was arranged by a group of institutions led by JPMorgan Chase Bank.
SL Green, the largest office landlord in New York City, acquired the 1.8 million-square foot property out of bankruptcy in 2022 and embarked on a robust repositioning effort with architecture firm Kohn Pedersen Fox that is expected to wrap up in the first quarter of 2027. The company sold a 49.9% interest in 245 Park Ave. to Mori Trust in June 2022. Completed in 1967, the tower sits across from Grand Central Terminal and is currently 100% leased to tenants including Société Générale, Ares Management, Houlihan Lokey, Carlyle and EQT Partners.
“This transaction brings our $7.0 billion 2026 financing plan to near completion, generating incremental liquidity, strengthening our balance sheet and extending our debt maturities,” said Harrison Sitomer, President and Chief Investment Officer of SL Green in a statement.
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