The Real Deal New York

Consortium including Bank of China, Wells Fargo set to provide $1.5B loan for One Vanderbilt

SL Green's Grand Central-area office project slated to cost $3.1B

June 21, 2016 06:00PM

Rendering of One Vanderbilt in East Midtown (credit: KPF) (inset from top: Marc Holliday and Chen Siqing)

Rendering of One Vanderbilt in East Midtown (credit: KPF) (inset from top: Marc Holliday and Chen Siqing)

A consortium of Bank of China, Bank of New York Mellon, J.P Morgan Chase, TD Bank and Wells Fargo is close to issuing a $1.5 billion construction loan for SL Green Realty’s One Vanderbilt office tower. 

SL Green’s CEO Marc Holliday said earlier this month the real estate investment trust hopes to add a $1.5 billion construction loan by the end of the summer, but the lenders were revealed by the Commercial Observer today.

The five-year loan deal has yet to be finalized, according to the newspaper. Scheduled for completion in 2020, the 1,401-foot-tall tower will be the second-tallest office building in New York after One World Trade Center. It will also be one of the most expensive skyscrapers ever built, with an estimated price tag of $3.14 billion. On a June 7 earnings call, Holliday acknowledged that a “project of this size does present an element of risk,”  and said selling a 50 percent stake in the project would cover roughly $820 million of the required equity.

One Vanderbilt won City Council approval in June 2015. In exchange for a rezoning that allows the tower to rise to its planned height, SL Green will have to invest $220 million in public infrastructure improvements. [CO] – Konrad Putzier

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