Natixis, M&T Bank Co-Lead $195M Loan for SL Green’s Tower 46
Natixis and M&T Bank announced Monday the banks acted as co-lead arrangers to provide a $195 million senior loan for landlords SL Green Realty Corp. and PGIM, Inc. to help complete the lease up of Tower 46 at 55 West 46th Street.
The floating-rate, interest only loan has a three-year initial term with three, one-year extensions, sources close to the deal told CO. Records show the loan replaced an existing $190 million Wells Fargo loan made in October 2014 for the acquisition of the Diamond District asset, as CO reported at the time.
Tower 46 comprises the 22nd through 34th floors of the International Gem Tower between Avenue of the Americas and Fifth Avenue, with an alternate address of 50 West 47th Street. The 347,694-square-foot, Class-A office property was developed in 2013.
SL Green—New York City’s largest commercial landlord—and PGIM, the global investment management arm of Prudential Financial, Inc., acquired the building within a building from Gary Barnett’s Extell Development in September 2014 for $275 million, property records show, after Extell struggled to lease up the upper-floor office space.
In October 2015, just over a year after purchasing the space from Extell, SL Green inked its first office tenant, hedge fund Fir Tree—which manages $12 billion in capital—to a 10-year deal for 31,000 square feet, which encompasses part of the 28th floor and the whole of the 29th floor. Global law firm Nixon Peabody as well as Comcast will also anchor the building, according to SL Green’s website.
This is just the most recent deal Natixis and M&T Bank co-arranged. In September, the two—accompanied by CIT—came together to provide Washington, D.C.- based developer and investor Madison Marquette with a $125 million construction loan for One Light Street in downtown Baltimore, MD, as CO previously reported. The 28-story, 800,000-square-foot Class A mixed-use tower will serve as M&T Bank’s new regional headquarters, where it will occupy roughly 155,000 square feet across six floors, accounting for approximately 60 percent of the building’s office space. The deal closed on September 5.
Representatives of SL Green and PGIM, Inc. did not immediately return a request for comment on the deal. A spokesman for M&T Bank did not return a request for comment.