SL Green closes $1.5 billion in construction financing for One Vanderbilt

October 18, 2016 - Financial Digest

New York, NY SL Green Realty Corp., one of New York City’s largest commercial property owners, has closed on $1.5 billion of construction financing for One Vanderbilt, ensuring that the 1,401-ft. tall office tower, will soon rise adjacent to Grand Central Terminal in Midtown Manhattan. One Vanderbilt will include direct connections to Grand Central’s network of mass transit, improved by $220 million in upgrades SL Green is implementing as part of the project.

The facility, led by Wells Fargo Bank, N.A. as administrative agent, The Bank of New York Mellon, JP Morgan Chase Bank, TD Bank, N.A., and Bank of China, as Syndication Agents, and Landesbank Baden-Württemberg as documentation agent, has a term of up to seven years and bears interest at a floating interest rate of 3.5% over LIBOR, with the ability to reduce the spread to as low as 3% upon achieving certain pre-leasing and completion milestones.    

“Closing on the construction financing means that nothing stands in the way of One Vanderbilt becoming an iconic addition to the Manhattan skyline,” said SL Green managing director, Robert Schiffer. “One Vanderbilt will set a new standard for trophy buildings in Midtown Manhattan. It will respond to the needs of the modern workforce, offering tenants technologically advanced, class A office space with best-in-class amenities and unparalleled proximity to public transportation.”

One Vanderbilt will encompass an entire block adjacent to Grand Central Terminal, bounded by Madison and Vanderbilt Avenues as well as 42nd and 43rd Sts. Vertical construction will begin in the second quarter of 2017, and is expected to be completed in 2020. Tishman Construction will manage the project.

Designed by Kohn Pederson Fox, the 58-floor, 1.6 million rentable-square-foot trophy tower will be the tallest building in Midtown and the second tallest in New York City. In 2014, TD Bank signed a 20-year, 200,000-square-foot lease, which includes its retail flagship store, making it the first office and retail anchor tenant in the building.

One Vanderbilt will feature stunning views through floor-to-ceiling windows and direct, underground access to Grand Central Terminal where the future Long Island Railroad’s (LIRR’s) East Side Access project will connect Long Island commuters to East Midtown for the first time.

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