SL Green Lands $360M Refi for 100 Park Avenue Next to Grand Central Terminal
There are worse ways to ring in the new year than a mammoth financing on a Manhattan office building, and here’s hoping a recently closed deal is a harbinger of good things to come in 2021.
SL Green Realty Corp. just sealed a $360 million refinance for 100 Park Avenue, its trophy office property next to Grand Central Terminal, Commercial Observer has learned.
Aareal Capital Corporation provided the floating-rate loan, while Cushman & Wakefield’s Steve Kohn, Alexander Hernandez, Adam Spies, Kevin Donner, Alex Lapidus and Meredith Donovan negotiated the debt on behalf of the landlord.
The financing opportunity drew significant attention from the lending community, in part, because of the property’s convenient location steps from the iconic transportation hub and its strong occupancy.
“Lenders were highly attracted to the LEED Gold-certified asset and its stalwart tenancy that has maintained 95 percent office collections throughout the COVID-19 pandemic,” Hernandez said. “Aareal was thoughtful with loan terms and will be an exceptional financing partner for the ownership as they continue to manage this property to their distinguished standards.”
SL Green, along with partner PGIM Real Estate, purchased the 36-story, 903,000-square-foot asset in 2000. Per CoStar Group data, PGIM remains a partner in the asset today.
Post-acquisition, the ownership undertook a sweeping redevelopment of the property, outfitting it with a new metal-and-glass facade and a lobby with a two-story atrium, as well as implementing significant infrastructure upgrades. The building remained fully occupied throughout the renovation, which was completed in 2008.
“SL Green and their partner have done a remarkable job refurbishing and managing this iconic office asset.” Kohn said. “The property’s proximity to Grand Central is highly attractive to employees from within the city as well as to commuters from the suburbs, who would not require a second means of transportation.”
Today, 100 Park Avenue’s tenants include AECOM Tishman, Wells Fargo Capital Finance and Aetna, as well as law firm Cozen O’Connor, which leased 7,100 square feet on the building’s 34th floor this past May. Tenants have access to a luxury amenity center with conference rooms, lounge areas, a golf simulator, game rooms and a wellness center.
Aareal Capital Corporation — the New York-based subsidiary of German financier Aareal Bank — also refinanced SL Green’s News Building last June. As part of a lending consortium that also included Crédit Agricole and Citi, the lender provided a $510 million loan for the Midtown asset.
Officials at SL Green weren’t immediately available for comment.