SL Green closes on $3B One Vanderbilt refi

Wells Fargo, Goldman lead one of the largest single-asset CMBS loans to date

New York /
Jun.June 29, 2021 09:31 AM
One Vanderbilt and Marc Holliday (SL Green, HeartlessMind/Wikimedia)

One Vanderbilt and Marc Holliday (SL Green, HeartlessMind/Wikimedia)

A group of banks led by Wells Fargo and Goldman Sachs provided the anticipated $3 billion refinancing for SL Green’s One Vanderbilt, Commercial Observer reported.

Bank of America, Bank of China, Bank of Montreal, Deutsche Bank, JPMorgan Chase, Barclays and Citigroup also participated in the 10-year, fixed-rate, commercial mortgage-backed securities (CMBS) financing, according to the publication.

SL Green Realty Corp, the National Pension Service of Korea and Hines Interests own the 67-story skyscraper. The refinancing will pay off $1.75 billion in construction debt on the property.

The deal is among the largest single-asset CMBS loans ever recorded, indicating sustained interest from lenders in high quality office assets, despite the sector’s broader struggles.

The transaction also highlights the current interest in CMBS financing, in which mortgages are bundled together in pools and sold to bond investors and generally offer a cheaper rate to borrowers.

“I think CMBS was really the only avenue to achieve this proceeds level,” Robert Schiffer, a managing director at SL Green, told Commercial Observer

The Real Deal first reported the transaction was in the works in April.

According to a May appraisal from Newmark Knight Frank, cited in the DBRS report, the 1.65 billion-square-foot office tower next to Grand Central has an as-is value of $4.1 billion and will be worth $5 billion upon stabilization.

Top tenants at One Vanderbilt include TD Bank, Carlyle Investment Management, McDermott Will & Emery, TD Securities, and Greenberg Traurig.

[CO] — Keith Larsen


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
Birch Group President Mark Meisner and 101 Hudson Street in Jersey City, NJ (The Birch Group, Google Maps)
Birch Group paying $380M for large Jersey City office
Birch Group paying $380M for large Jersey City office
Main-MainImage_.psd FT-Thumbnail_.psd
Blackstone to net $4B profit in sale of Vegas casino
Blackstone to net $4B profit in sale of Vegas casino
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
290 Motor Parkway, the office of Flexible Business Systems (Getty, Google Maps)
Long Island IT company wants to build ice rink for employees
Long Island IT company wants to build ice rink for employees
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
arrow_forward_ios

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

Loading...