SL Green nears $1.7B refi at One Madison

For the second time this month, Marc Holliday has reason to celebrate at One Madison.

SL Green is close to landing a $1.7 billion loan to refinance the Midtown South office building, Bisnow reported. The commercial mortgage-backed securities debt will refinance the $1.2 billion left on the property’s construction loan, according to a Fitch Ratings report.

As part of the transaction, the ownership group will fund $136 million in reserves, which will go towards recent concessions and tenant improvements. The owners can also cash out $308 million in equity.

Wells Fargo, Goldman Sachs, JPMorgan Chase, Bank of America and Deutsche Bank are underwriting the debt. The deal is expected to close during the first week of April.

SL Green declined to comment to Bisnow on the pending refinancing. It shares ownership of the property with the National Pension Service of Korea, Mastern Investment Management and Hines.

The refinancing will be the latest notch in the belt of SL Green at One Madison.

A few weeks ago, Harvey AI — an artificial intelligence tenant — doubled its footprint at One Madison by adding more than 90,000 square feet, bringing its total space in the tower to 185,000 square feet.

The expansion brought the office development, which opened less than three years ago, to 100 percent occupancy. The building has emerged as a hub for tech and finance companies; tenants include Sigma Computing, IBM, Coinbase and Franklin Templeton.

SL Green acquired the property in 2005 for $918 million before beginning a $2.3 billion redevelopment; work wrapped in 2023. Amenities include an event space and rooftop garden, a tenant lounge and a Chelsea Piers fitness club. Celebrity chef Daniel Boulud also operates multiple spaces within the property, including steakhouse La Tête d’Or by Daniel.

SL Green is executing its plan to sell roughly $2.5 billion of property while pursuing about $1 billion in acquisitions and development opportunities. The strategy pairs opportunistic buying with a steady recycling of capital.

The firm went into contract to buy Park Avenue Tower at 65 East 55th Street for $730 million from Blackstone, a discount to what the private equity giant had invested in acquiring and renovating the building. The company also agreed to buy the former Brooks Brothers flagship at 346 Madison Avenue, a site that could support an 800,000-square-foot office tower just steps from Grand Central.

Overseeing this flurry of sales, acquisitions, and development is Harrison Sitomer, who was recently promoted to president.

— Holden Walter-Warner