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SL Green secures $450M loan for 485 Lexington Avenue

SL Green has secured a $450 million loan for 485 Lexington Avenue in Midtown.

Photo via SL Green's website
Photo via SL Green’s website

According to Commercial Mortgage Alert, the CMBS loan came in two separate transactions worth $315 million and $135 million. The financing was provided by Goldman Sachs.

Goldman Sachs is expected to securitize a significant portion of the loan through a single-borrower offering this month. The rest will likely be included in a conduit deal.

The property, located between 46th and 47th Streets, is a 32-story office tower with 921,370 s/f of space. SL Green bought 485 Lexington Avenue, along with the adjacent building 750 Third Avenue, for $480 million in 2004. The two towers are connected through a shared lobby.

In 2009, Mazal 485 LLC, an entity composed of Israeli real estate investment firm Optibase and Gilmor USA LLC, bought a 49.5 percent interest in the building for $20.8 million. The deal also included a $20 million loan in exchange for a pledge from SL Green to sell another 49.5 percent interest in the building.

Recent lease deals in the property include lease renewals for finance firms Offit Capital and Tailwind Capital. Both companies signed full-floor deals for 14,206 s/f last June. The largest tenants in the tower are Citbank (which has sub-leased office space to Xerox, Morgan Stanley and Golden Tree) and Travelers Insurance. The new loan replaces a $450 million mortgage from Wachovia Bank.

A Cushman & Wakefield team composed of Steve Kohn, Alex Hernandez and Alex Lapidus represented SL Green in the transaction.

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