The Real Deal New York

SL Green, Vornado seal massive CMBS deal at 280 Park

This is the first time a loan on the building has been securitized in a single-asset issuance
By Will Parker | September 11, 2017 02:38PM

SL Green Realty and Vornado Realty Trust’s loan for 280 Park Avenue will be securitized in a $1.1 billion offering, according to regulatory filings reported by Fitch on Monday.

The landlords landed a $1.2 billion refinancing for the 43-story office tower in August. The lenders were not reported at the time, but CMBS documents show that Deutsche Bank, Barclays, Citi Real Estate Funding and Goldman Sachs Mortgage Company originated the debt. The Commercial Obeserver previously reported that the lenders were planning a securities issuance.

Nearly $1.1 billion of last month’s loan will be cut up into seven securities, the largest having an original balance of $509 million.

The largest tenant at the Midtown East tower is PJT Partners, an investment bank with a 142,000-square-foot lease that expires in 2026. The company, spun-off from Blackstone Group in 2015, currently pays a steep $105 per-square-foot for its space. The building has no expiring leases in 2017, but 41 percent of the 1.26 million-square-foot building will be up for renewal between years 2024 and 2026 alone.

Vornado and SL Green took a controlling stake in the tower in 2011, buying out then-owner Invesco.

Last year, the owners celebrated the arrival of the Four Seasons restaurant to 280 Park Avenue, after it decamped from its historic dining room at the Seagram Building.

SL Green declined to comment.