SL Green's Strategic Loan Move at One Madison Avenue

In a significant financial move, SL Green Realty Corp. (NYSE: SLG) has successfully modified a $1.25 billion mortgage facility for One Madison Avenue, indicating the company's confidence in the property's future and the broader Manhattan commercial real estate market. The loan modification, led by Wells Fargo Bank with 14 global banks, extends the final maturity date to November 2027 and maintains a 3.10% interest rate over Term SOFR. This strategic move allows SL Green to secure financial flexibility and focus on maximizing the property's value.

One Madison Avenue, a 1.4 million-square-foot office tower, is a testament to SL Green's commitment to New York City's commercial real estate landscape. The property, which anchors the Midtown South office market, has seen impressive leasing activity, with tower floors and retail spaces 100% leased. Major tenants such as Franklin Templeton, Coinbase, Palo Alto Networks, and IBM, which moved its headquarters to the property in September, have contributed to the building's high occupancy rate.

The loan modification includes a potential interest rate reduction upon meeting specific leasing thresholds, incentivizing SL Green to continue driving occupancy and lease-up. With the property already more than 65% leased, achieving these thresholds would further enhance the property's financial performance and SL Green's overall cost of borrowing.

To attract tenants and meet leasing thresholds, SL Green is leveraging One Madison Avenue's unique features, such as industry-leading amenities, a wellness-focused environment, and a state-of-the-art HVAC system. These attributes, combined with the property's prime location overlooking Madison Square Park, position One Madison Avenue as an attractive destination for top-tier companies.


The loan modification at One Madison Avenue reflects SL Green's strategic approach to capitalizing on market opportunities while managing risk. By securing a favorable interest rate and extending the maturity date, the company can focus on operational efficiency, strategic planning, and potential new development projects or acquisitions.

SL Green's commitment to New York City's commercial real estate market is evident in its investment in One Madison Avenue and other key developments. As the city continues to recover and grow, SL Green remains well-positioned to benefit from the ongoing demand for prime office space and the bull market fueled by strong corporate earnings and technological advancements.

In conclusion, SL Green's successful loan modification at One Madison Avenue demonstrates the company's strategic approach to maximizing value and managing financial risk in the Manhattan commercial real estate market. With a focus on leasing activity, operational efficiency, and long-term growth, SL Green is well-equipped to navigate the dynamic market landscape and capitalize on emerging opportunities.