SL Green Realty Corp. and Vornado Realty Trust have completed a $1.2 billion refinancing of 280 Park Ave., a 42-story, 1.2 million-square-foot office tower located in Midtown Manhattan. The two New York City real estate giants purchased the controlling interest in the property from Investcorp in 2011, for nearly $500 million, according to data gathered by Yardi Matrix.
The refinancing replaces a previous $900 million loan, which bore interest at a variable annual rate equal to the one-month LIBOR plus 2.00%, and was scheduled to mature in 2023. The new floating-rate, interest-only loan carries a rate of LIBOR plus 1.73%, currently 2.97%, and is scheduled to mature in September 2024.
SL Green and Vornado timed the refinancing of 280 Park Ave. perfectly. The building recently underwent a $150 million redesign and renovation of its facade and interior, and was leased up to roughly 97%. The glass-clad tower also welcomed a new Four Seasons restaurant, a new world-class lobby, a new program meant to enhance sustainability, new elevator cabs and bathrooms, state-of-the-art security, and much more.
Designed by Henry Dreyfuss and completed in 1962, the office tower at 280 Park Ave. includes nearly 4,500 square feet of retail space, and houses tenants such as Blue Mountain Realty, Wells Fargo, Harvest Partners and GIC, according to Yardi Matrix. The Class A+ property is managed by CBRE, while SL Green handles leasing management.