SL Green Lands $500M Refi for 919 Third Avenue
By Nicholas Rizzi April 27, 2023 11:33 amreprints
SL Green Realty has landed a $500 million refinancing for its 47-story office building at 919 Third Avenue, the landlord announced Wednesday.
Credit Agricole and Aareal Bank led a six-bank syndicate to provide the three-year loan — with two one-year extension options — with an interest rate of 250 basis points over term SOFR on the 1.3 million-square-foot building, according to SL Green and a source with knowledge of the deal. The news was first reported by Bloomberg.
“We are pleased to have secured this refinancing for 919 Third Avenue, which reaffirms the liquidity in the market for high-quality assets with high-quality sponsors,” Harrison Sitomer, chief investment officer at SL Green, said in a statement. “The deep relationships we have with financial institutions around the world coupled with the caliber of our portfolio and operating platform give us confidence in our ability to continue to execute in the capital markets, notwithstanding current credit market conditions.”
CBRE’s Darcy Stacom and Bill Shanahan helped source the deal, while CBRE’s James Millon, Tom Traynor and Mark Finan arranged the financing.
The slowing office market made the deal “incredibly hard” to get over the finish line, but “good buildings” with tenants on long-term leases helped attract six banks to sign on, the source said.
Other lenders who participated in the refinancing included Bank ABC, MetLife and PacLife, the source said.
The 47-story tower is 80 percent leased, and its tenants include law firms Schulte Roth & Zabel and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, according to SL Green. Bloomberg LP occupied about 557,000 square feet in the property since 2016 and in 2021 expanded by an additional 191,000 square feet, as Commercial Observer previously reported.
The “core tenant base” and “preeminent asset quality” made the property an “ideal candidate for refinancing,” Doug Traynor, the CEO of Aareal, said in a statement.
Nicholas Rizzi can be reached at email@example.com.