SL Green gets $600M construction loan for 410 Tenth Avenue

REIT is redeveloping the 20-story tower, to be anchored by Amazon and First Republic Bank

New York /
Sep.September 08, 2020 02:15 PM
410 Tenth Avenue with SL Green’s Andrew Mathias and Marc Holliday (Google Maps; SL Green)

410 Tenth Avenue with SL Green’s Andrew Mathias and Marc Holliday (Google Maps; SL Green)

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.





    Related Articles

    arrow_forward_ios
    The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
    SL Green puts Daily News building up for sale
    SL Green puts Daily News building up for sale
    SL Green snags private-equity firm at One Vanderbilt
    SL Green snags private-equity firm at One Vanderbilt
    SL Green snags private-equity firm at One Vanderbilt
    SL Green’s locks in big bank lease at Hudson Yards redevelopment site
    SL Green’s locks in big bank lease at
    Hudson Yards redevelopment site
    SL Green’s locks in big bank lease at
    Hudson Yards redevelopment site
    A photo illustration of Mickey King of Antun’s in Queens Village and Jericho Terrace in Mineola (Getty, Great American Brokerage, Facebook/New York State Restaurant Association)
    Tri-state roundup: LI restaurant feast on record sale
    Tri-state roundup: LI restaurant feast on record sale
    SL Green's Marc Holliday (Illustration by The Real Deal with Getty, SL Green)
    Hybrid work persisting far longer than I expected: SL Green’s Holliday
    Hybrid work persisting far longer than I expected: SL Green’s Holliday
    From left: Silverstein Properties’ Larry Silverstein; Deputy Mayor of Economic Development Maria Torres-Springer; SL Green Realty’s Marc Holliday; Rudin Development’s Bill Rudin (Photo Illustration by Steven Dilakian for The Real Deal with Getty)
    City official warns against “overcorrecting” on office conversions
    City official warns against “overcorrecting” on office conversions
    A photo illustration of Related Companies' Jeff Blau (Getty)
    Related proposes 1,500-room resort in Hudson Yards casino bid
    Related proposes 1,500-room resort in Hudson Yards casino bid
    Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
    Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
    Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...