SL Green, Vornado close on $1.2B refi package for 280 Park

Refi replaces $900M Deutsche, Bank of China loan
By Chava Gourarie | August 24, 2017 10:15AM

From left: 280 Park Avenue, Steve Roth and Marc Holliday

SL Green Realty and Vornado Realty Trust closed on a $1.2 billion financing package to refinance the 43-story office tower at 280 Park Avenue.

The financing replaces a $900 million loan from a group that includes Deutsche Bank and Bank of China, which closed in 2016, that was set to mature in 2023. The new interest-only loan will mature in 2024 and carries a rate of Libor plus 1.73 percentage points.

It’s not immediately clear who the lender is.

It’s among several billion-dollar-plus refinancings to close this year on Manhattan office towers. Crown Acquisitions landed a $1 billion refinancing from a trio of lenders for the Olympic Tower, Boston Properties scored a $2.3 billion loan to refinance the GM Building, and RXR Realty and investor David Werner landed a $1.4 billion debt package at 5 Times Square.

Vornado and SL Green recently completed a $150 million renovation of the 1.2 million-square-foot building, and it is now at 97 percent occupancy. The tenant roster includes a list of financial firms including Wells Fargo, the Singapore government fund and private-equity firm Antares Capital.

The owners of 280 Park also landed the famed Four Seasons restaurant, which was ousted from its home at the Seagram Building last year by Aby Rosen. The restaurant is expected to open by Thanksgiving.