SL Green Secures $1.65B Refi for Historic NYC Office Tower
Wells Fargo was joined by Goldman Sachs, J.P. Morgan, Bank of America, Deutsche Bank and Crédit Agricole in originating the CMBS loan
By Brian Pascus March 25, 2026 2:01 pm
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One of SL Green Realty’s prime New York City office properties just got a new round of capital.
Marc Holliday’s real estate investment trust (REIT) — the largest owner of office space in the five boroughs with 30 million square feet — secured a $1.65 billion refinancing of One Madison Avenue, a historic, 1.4 million-square-foot, mixed-use office building between East 23rd and East 24th streets in Manhattan.
Wells Fargo, along with participants Goldman Sachs, J.P. Morgan, Bank of America, Deutsche Bank and Crédit Agricole, provided the commercial mortgage-backed securities (CMBS) debt, structured as a single-asset, single-borrower (SASB) five-year, fixed-rate loan which priced 181 basis points above the U.S. Treasury index, giving the deal an interest rate of 5.81 percent, according to a release.
The new debt will replace a $1.25 billion construction facility over the property and create a new outstanding balance of $1.17 billion, per SL Green.
“The strong investor demand for this transaction underscores the depth of liquidity available for high-quality office assets, even amid periods of market volatility,” Harrison Sitomer, president and chief investment officer of SL Green, said in a statement.
Sitomer added that the deal closing brings the firm’s financing activity to $4.5 billion in less than three months in 2026, as the firm continues to secure capital in hopes of reaching its stated goal to execute $7 billion in financings on the year. CO reported last week that SL Green extended and refinanced $2 billion of a $2.4 billion corporate credit facility at a lower interest rate.
One Madison Avenue opened in 1893, and for a brief time the 27-story building, with its famous clock tower, was the tallest building in the world. The building was rebuilt in limestone and granite in 1953, and used by MetLife for much of the 20th century. SL Green purchased the building in 2005.
Beginning in 2020, at the nadir of office usage during COVID-19, SL Green began an ambitious $2.3 billion plan to renovate the entire office property, combining a new 18-story, 500,000-square-foot glass-facade into the original limestone and granite exterior while renovating the entire building from within.
The REIT was joined by joint venture partners Hines and National Pension Service of Korea on the redevelopment.
SL Green completed the renovation three months ahead of schedule in September 2023, and reopened with tenants such as Chelsea Piers Fitness, IBM, Coinbase and Franklin Templeton secured through long-term leases. Other leases signed since then include tenants Palo Alto Networks, FanDuel Group, Sigma Computing and Harvey AI.
The building includes Le Jardin Sur Madison, an event space and rooftop garden overlooking Madison Square Park; and the restaurant La Tête d’Or by Daniel, featuring cuisine from chef Daniel Boulud.
One Madison Avenue is 100 percent leased, according to SL Green.
Brian Pascus can be reached at bpascus@commercialobserver.com.
