SL Green Refinances Mortgage on Flatiron District Office Tower

SL Green, the largest owner of Manhattan office space, has completed a major refinancing deal for a 30-story tower in the Flatiron District alongside its joint venture partner, PGIM. The partnership has secured a $1.4 billion loan for 11 Madison Ave.

The new five-year, fixed-rate loan was arranged by a consortium of major lenders led by Wells Fargo, which included JPMorgan Chase, Bank of America, Goldman Sachs, Deutsche Bank and Bank of Montreal.

This new mortgage replaces a previous loan of the same value on the property. The prior debt was comprised of a senior loan worth just more than $1 billion, in addition to two mezzanine loans totaling $325 million.

Advising the deal for SL Green and PGIM were CBRE’s Tom Traynor, Tom Rugg, and Henry Fenmore, along with Newmark’s Jordan Roeschlaub, Nick Scribani and John Caraviello. Fried Frank’s Michael Werner, Charles Roper Jr., Loren Naftali and Molly Diamondstein also provided counsel.

“This loan execution underscores our deep relationships with the lending community and the enduring strength of premier office assets,” said Harrison Sitomer, chief investment officer at SL Green. “The strong demand from global institutional bond investors resulted in one of the most successful CMBS executions in years, which is reflective of the exceptional quality of 11 Madison Avenue and the confidence investors continue to place in our platform.”

“This refinancing reflects the strength of New York’s office market when it comes to Class A, well-located assets that continue to attract tenants and capital,” said Joanna Mulford, managing director and senior portfolio manager of PGIM’s real estate business.

The property at 11 Madison Ave. is a 2.3 million-square-foot office tower and occupies the full city block bordered by Park Avenue South and Madison Avenue, as well as 24th and 25th streets.

The building is 93% leased and has a varied tenant list that includes the likes of UBS, Sony, William Morris Endeavor, Suntory, Pinterest, Tempus AI and Fidelity. It’s also notable for being home to the globally renowned, 3-Michelin-Star restaurant Eleven Madison Park.

The deal is the latest addition to a list of multi-billion-dollar CMBS loans for office towers in Manhattan, following Tishman Speyer’s $2.9 billion refinance of The Spiral, the Durst family’s $1.3 billion mortgage at One Five One and RFR’s $1.2 billion mortgage on the Seagram Building.