SL Green Realty has secured $480 million in new financing that will back its purchase of Park Avenue Tower in Midtown, Manhattan.
The CMBS carries a fixed, five-year term that the developer has hedged to a rate of 5.25 percent. Wells Fargo, with some help from Bank of America and JP Morgan, provided the loan.
With the acquisition financing secured, the deal to acquire the 36-story Class A tower has now closed. SL Green first announced the $730 million buy in October.
“Closing on Park Avenue Tower with best-in-class financing fortifies our substantial presence on Park Avenue, the strongest office submarket in the country," Harrison Sitomer, chief investment officer at SL Green, said in a statement.
"With this acquisition, the new financing, and the recent sale of a joint venture interest in 100 Park Avenue, we are well under way on the execution of our 2026 capital markets strategy.”
SL Green's Park Avenue portfolio also includes 100 Park Avenue, 500 Park Avenue, 450 Park Avenue, 280 Park Avenue, 245 Park Avenue, 125 Park Avenue and One Vanderbilt Avenue. Recently, SL Green struck a 49 percent equity sale for 100 Park Avenue in a deal valued at $425 million to Rockpoint.
Park Avenue Tower, which is located at 65 East 55th Street, spans 621,824 square feet. The building recently went under renovation to make improvements to the plaza, lobby, office suites and add more amenities.
When first announcing the acquisition of the tower, Sitomer pledged that the asset would "deliver sustainable cash flow and provide long-term value creation" thanks to the Park Avenue corridor's low vacancy and favorable rents.
Manhattan's office sector is coming off a strong 2025, which saw 42.9 million square feet of leasing activity, according to a market report from Savills. This was the highest annual number since 2014 and up 20.1 percent year-over-year. Also, sublease availability fell to its lowest levels since the third quarter of 2019.
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