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.
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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