SL Green Realty is replacing one big construction loan with another at its Far West Side office redevelopment.
The real estate investment trust recently closed on a $600 million construction loan for its office project at 410 Tenth Avenue, the company announced Tuesday. Amazon and First Republic Bank have signed leases to anchor the 20-story property.
The new financing was provided by a group of domestic and international banks led by Goldman Sachs and Wells Fargo. The new debt replaces the previous $465 million loan that was taken out last year, according to the REIT.
The refinancing comes at a time when the city’s office market is facing an existential crisis. With many companies acclimated to remote work, Manhattan’s office availability hit a seven-year high — and demand for space nationwide has hit its lowest point since the dot-com crash.
But Andrew Mathias, SL Green’s president, said the deal is a reflection of the capital market’s confidence in quality office properties.
“We now look ahead to completing this project in the third quarter of 2021, on time and on budget,” he said.
In 2018, the REIT acquired a majority interest in 410 Tenth Avenue, previously known as 460 West 34th Street, valuing the property at $440 million. The firm has been conducting the building-wide redevelopment project, including a relocation of the building’s lobby entrance from 34th Street to 33rd Street.
About a half of the 636,000-square-foot building will be occupied by Amazon, which signed a lease for 335,000 square feet. First Republic Bank will occupy 212,000 square feet, according to media reports.
In July, the REIT was reportedly marketing the property for $1.1 billion.