SL Green closes on $3B One Vanderbilt refi

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

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.

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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

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