Wells Fargo is serving as administrative agent on a $1.5 billion construction loan that a consortium of banks is providing to SL Green Realty on its One Vanderbilt office development, which is set to become the tallest building in Midtown Manhattan.
Along with Wells Fargo, Bank of New York Mellon, JPMorgan Chase, TD Bank, Bank of China, and Landesbank Baden-Württemberg contributed to the loan, according to a statement from SL Green.
The loan carries a seven-year term and a 3.5 percent floating interest rate over LIBOR, with the ability to reduce that to 3 percent “upon achieving certain pre-leasing and completion milestones.”
One Vanderbilt will include direct connections to Grand Central Terminal and SL Green will provide $220 million of upgrades to transit in the area, part of a previous agreement stemming from a lawsuit filed by the transit hub’s ownership group. The development will reportedly cost $3 billion, though an SL Green spokesperson would not confirm the figure.
The 58-floor, 1.6 million sq ft trophy tower will encompass an entire block adjacent to Grand Central Terminal, bounded by Madison and Vanderbilt Avenues as well as 42nd and 43rd Streets. Standing at 1,401 ft, it would rise roughly 150 ft taller than the Empire State Building. The tallest building in Midtown currently is the 1,397 ft 432 Park Avenue residential building.
Vertical construction will begin in the second quarter of 2017, and is expected to be completed in 2020. TD Bank signed a 20-year, 200,000 sq ft lease in 2014, making it the first office and retail anchor tenant in the project.