SL Green Refinances 100 Park, Set to Buy Partner’s Interest

SL Green followed up news of a sizable lease at 100 Park Avenue by announcing a series of ownership moves at the Midtown Manhattan office tower.

The office landlord refinanced its debt at the property, it announced on Monday. The modification extends the $360 million mortgage’s maturity date to December 2027 while maintaining the 2.25 percent interest rate. The lenders provided an additional $70 million to the debt, a rare increase to a Manhattan office mortgage balance in recent years.

The company release did not identify the lenders, but a syndicate led by German commercial bank Landesbank Hessen-Thuringen Girozentrale, also known as Helaba, provided a $360 million loan in February 2014. Helaba also led a $215 million refinancing in 2009.

A representative for SL Green did not immediately respond to a request for comment. Newmark’s Adam Spies and Doug Harmon advised the landlord, while CBRE’s Doug Middleton advised the lenders.

SL Green also said it agreed to buy its partner’s 49.9 percent interest in the property — Prudential Financial has owned a significant stake since 2000, when it was announced as part of a joint venture acquiring the building.

Additionally, SL Green made Alvarez & Marsal’s lease at the property official. The professional services firm inked a 220,000-square-foot lease at the property, which was first reported last week. The 15-year lease brings occupancy at the building to 96 percent.

SL Green is closing out the year showing its confidence in an office market battered and bruised by the pandemic and a higher interest rate environment. Last month, SL Green acquired the office portion of 500 Park Avenue from Morgan Stanley for $130 million, or $647 per square foot.

The company also recently finalized an extension and modification of a $743 million loan backing the property at 1515 Broadway, keeping its 3.93 percent interest rate while pushing the maturity date into March 2028, a three-year extension.