SL Green Raises More Than $1B for NYC Debt Fund

SL Green Realty raised more than $1 billion for its SLG Opportunistic Debt Fund, which purchases loans or loan portfolios around New York City, according to a Thursday announcement from the company.

SL Green said the fund, which is backed by a group of public pensions, insurance companies and “select high-net-worth platforms,” secured more than $500 million in new commitments this week alone, with several more to come.

In December, SL Green received a $250 million anchor commitment from Canadian pension fund Caisse de Dépôt et Placement du Québec for the fund, as Commercial Observer previously reported.

“We have seen an overwhelming appetite for New York City investment from sophisticated domestic and international investors who recognize the opportunity and share the desire to invest alongside SL Green in this market,” Harrison Sitomer, chief investment officer at SL Green, said in the statement.

“It is especially gratifying to work with so many existing institutional partners, while bringing on capital from new relationships as well,” Sitomer added. “Reaching this milestone marks an important first step in the continued growth of SL Green’s asset management platform.”

SL Green’s debt fund launched last year with the purpose of “capitalizing on the dislocation between rapidly improving leasing fundamentals and the early stages of improving debt capital markets” through structured debt investments in “high-quality New York City commercial assets,” the real estate investment trust (REIT) said.

The debt fund originates or purchases loans or loan portfolios in the city’s office and retail sectors, according to CO.

“The strong global demand underscores the market’s confidence in SL Green’s ability to source and execute high-conviction opportunities in New York City, and is a clear testament to our track record as a disciplined investor and operator in one of the world’s most competitive markets,” Young Hahn, a senior vice president at SL Green, said in the statement.

News of the fundraising comes after SL Green reported steady leasing during the second quarter of 2025, with 46 Manhattan office leases signed encompassing 541,721 square feet, according to the REIT’s earnings report released Thursday.

Isabelle Durso can be reached at idurso@commercialobserver.com.