SL Green and PGIM Real Estate are set to secure $1.4 billion in financing for one of Manhattan’s largest office towers, marking one of the biggest single-building refinancings in the city this year. The joint venture, which owns 11 Madison Avenue, will close on the fixed-rate mortgage by the end of September.
The 2.3 million-square-foot office building in the Flatiron District will be financed by a consortium of major lenders, including Wells Fargo, JP Morgan Chase, Bank of America, Goldman Sachs, German American Capital Corp., and Bank of Montreal. Computershare Trust Co. will serve as the trustee, while Trimont has been appointed as special servicer. Proceeds from the transaction will retire existing debt and provide capital for tenant improvements and leasing costs.
The deal comes as the previous $1.1 billion mortgage secured by Wilmington Trust in 2015 reached maturity this month. That earlier financing was tied to SL Green’s $2.4 billion acquisition of the property from The Sapir Organization in September 2015. About a year later, PGIM took a 40 percent ownership stake in the office tower for $480 million.
Eleven Madison Avenue occupies a full city block between Madison Avenue and Park Avenue South, spanning 24th to 25th streets. Built in stages from 1932 through 1950, the tower was originally conceived as a 100-story skyscraper before construction was curtailed by the Great Depression. Today, the 30-story property is recognized as one of Midtown South’s premier office destinations.
The building offers unusually large floor plates averaging above 100,000 square feet, along with 30,000 square feet of ground-floor retail. Amenities include a fitness center, cafeteria, and auditorium. The LEED Gold-certified property has undergone multiple waves of renovation, most recently in 2018.
Despite a challenging Manhattan office market, 11 Madison has historically performed well. From 2016 through 2024, occupancy levels remained above 95%. The building is currently 93% leased, with a tenant roster that includes global firms such as UBS, Credit Suisse, Sony Music, Suntory Holdings, Pinterest, William Morris Endeavor, and WME IMG.
Leasing activity has continued this year with health technology company Tempus AI signing a 10-year lease for nearly 40,000 square feet. The firm is taking part of the 17th floor in the tower, which also counts as a tenant the renowned restaurant Eleven Madison Park, housed in its ground level.
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