SL Green Realty Corp, Manhattan’s largest office landlord, has closed a $3 billion 10-year, fixed-rate financing of One Vanderbilt Avenue.
The snew tower in the heart of East Midtown is owned in a joint venture between SL Green, National Pension Service of Korea and Hines Interests, LP.
The loan was securitized in a single asset, single borrower (SASB) agented CMBS transaction. The agents were a consortium of world class financial institutions, led by Wells Fargo Bank, N.A. and Goldman Sachs Bank USA, that also included Bank of America N.A., Bank of China, Bank of Montreal, Deutsche Bank, JP Morgan Chase Bank, N.A., Barclays Capital Real Estate Inc. and Citi.
The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75 billion construction facility with an outstanding balance at the time of payoff of approximately $1.54 billion. One Vanderbilt is currently 89 percent leased.
“Once again, One Vanderbilt is setting the benchmark as one of the country’s premier office towers,” said Robert Schiffer, Managing Director at SL Green Realty Corp. “Our vision for One Vanderbilt has been achieved and, in many respects, exceeded. Now, we have completed the largest ever single building securitization, executed with a high quality and deep bond order book, resulting in incredibly efficient pricing and underscoring the attractiveness of this iconic development. We are grateful to all of our partners for their commitment to us and to One Vanderbilt.”
“Wells Fargo is thrilled that SL Green entrusted our institution to act as lead lender for the construction financing of this significant property, and to continue on as lead lender for the largest ever fixed rate CMBS financing secured by a single asset,” said Robert Rosenberg, Managing Director at Wells Fargo. “One Vanderbilt is truly a trophy office property, and it’s no surprise the CMBS financing was well oversubscribed.”
Standing 1,401 feet tall, One Vanderbilt is the new headquarters for many of the world’s leading finance, technology, law and real estate firms. The 1.7 million-square-foot skyscraper offers an unparalleled combination of amenities, innovative office design, state-of-the-art technology, the highest level of sustainability and healthy workplace environment together with direct connection to Grand Central Terminal.
Building tenants include TD Securities, a leading banking and investment firm that provides a wide range of capital markets products and services and TD Bank, America’s Most Convenient Bank, one of the ten largest banks in the U.S.; private equity firms The Carlyle Group, KPS Capital Partners, Oak Hill Advisors, InTandem Capital, SageWind Capital and Sentinel Capital Partners; prestigious law firms Greenberg Traurig and McDermott Will & Emery; global German financial firm DZ Bank; financial consulting firm Accordion Partners; publicly traded real estate investment trust MFA Financial Inc.; boutique real estate capital markets advisor Hodges Ward Elliott; Walker & Dunlop, LLC, a premier commercial real estate finance company; MSD Partners, a leading investment adviser; Mamoura Holdings LLC; Nearwater Management LLC, a specialty finance company focused on providing asset-based financing solutions; Kyndryl, the independent company that will be created following the separation of IBM’s Managed Infrastructure Services business; Heidrick & Struggles, International, Inc., and SL Green Realty Corp.
Chatham Financial acted as an advisor to SL Green on the transaction.