SL Green closes nearly $300m in loans on three Manhattan properties

New York City's largest office landlord has closed at least $296 million in loans on three Manhattan properties.

800 Third Avenue, Manhattan
800 Third Avenue, Manhattan

New York City’s largest office landlord has closed at least $296 million in loans on three Manhattan properties.

SL Green Realty Corp. finalized a $177 million refinancing on the office tower at 800 Third Avenue, a $75 million refinancing of Jericho Plaza and a $44 million construction loan on a retail property at 719 Seventh Avenue.

“The successful completion of these transactions provides evidence that liquidity continues to be available for high-quality borrowers,” said Andrew Mathias, president at SL Green, in a prepared statement.

The loan on 800 Third Avenue is a 10-year, $177 million mortgage with a fixed 3.17 percent interest rate. The 40-story, Class A office building in the Grand Central submarket is 565,000 sq ft and currently 96 percent occupied.

Bank of New York Mellon Corporation provided the financing on the office building, according to city records.

The Jericho Plaza loan is a two-year floating rate mortgage, subject to three one-year extension options, with an interest rate of 4.15 percent over LIBOR. The initial funding was approximately $75 million, but the total funding could stretch to $100 million.

The two-property complex totals 662,000 sq ft on nearly 49 acres of land located next to the Long Island Expressway. SL Green, which is part owner of the property with Onyx Equities and others, will implement a capital improvement plan that includes renovations and upgrades to the lobby, elevator cabs, a conference facility and landscaping.

The two-year, $44 million construction loan on the retail development site at 719 Seventh Avenue features a floating interest rate of 3.05 percent over LIBOR. The Times Square retail property features approximately 10,000 sq ft and an extensive LED signage program, while the sponsor expects to complete construction prior to the 2016 holiday season.

“The refinancing of 800 Third and Jericho represent another stride in our effort to extend the term of secured debt maturities, reduce cost and generate incremental proceeds,” said Mathias.

He added: “The construction financing secured at 719 Seventh speaks to SL Green’s ability to recognize value and lock in low borrowing rates for a property set to benefit from its prime retail location.”

As of December 31, 2015, SL Green held interests in 121 Manhattan buildings totaling 48.3 million sq ft.

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