SL Green Finalizes Extension of $740M Loan

When the loan tied to SL Green’s office tower at 1515 Broadway hit special servicing earlier this month, the firm said it was finalizing an extension on the debt. Within days, it made good on its word.

On Wednesday, the office landlord announced the extension and modification of the $742.8 million loan backing the Midtown Manhattan property. The maturity date of the debt is being pushed back three years to March 2028, while the interest rate is remaining at 3.93 percent.

The press release didn’t mention the identity of the lender, but Morningstar data shows the debt was originated by a group that includes the Bank of China and an entity that appears tied to Goldman Sachs.

The loan tied to the property hit special servicing due to imminent maturity default, according to a Morningstar report. The loan was initially slated to mature this coming March and a refinancing was expected to stick SL Green with a higher rate, which the landlord managed to avoid.

Despite the looming maturity date, there weren’t significant concerns about the property’s performance, which Morningstar called “stellar.” SL Green is current on mortgage payments and building revenue comfortably covers debt service, according to loan data.

Paramount leases a majority of the property and recently announced significant layoffs. The lease is scheduled to run through 2031.

The extension is notable, not just for the property’s location and size, but for the future SL Green envisions for the site itself. The landlord plans to transform the office tower and home of Minskoff Theater into a Caesar’s Palace casino.

SL Green has partnered with Caesars and Jay-Z’s Roc Nation on the $4 billion proposal. The project is in a crowded field of bids for one of New York’s three downstate gaming licenses.