SL Green, Vornado Complete $1.2B New York Refinancing

SL Green Realty Corp. and Vornado Realty Trust closed a $1.2 billion refinancing for 280 Park Avenue, a 1.25-million-square-foot Manhattan office building held by the companies in a joint venture.

The floating-rate, interest-only loan priced at LIBOR plus 1.73 percent, currently 2.97 percent. It will mature in September 2024. The new loan replaces a previous $900 million loan that bore interest at LIBOR plus 2 percent and was scheduled to mature in May 2023.

The joint venture refinanced the 43-story property on Manhattan’s East Side Plaza District after a $150 million redesign and renovation of the building’s facade and interior that increased occupancy to 97 percent.

The Four Seasons restaurant recently moved from its long-time location in the Seagram Building at 375 Park Avenue in Midtown and will open at 280 Park Avenue shortly.

SL Green also sold 16 Court Street, a 317,600-square-foot office building in Brooklyn, N.Y. for $171 million to real estate fund manager CIM Group, Los Angeles. CBRE New York City Capital Markets Chairman Darcy Stacom represented SL Green in the transaction.

SL Green acquired the 36-story office building in 2007 for $107.5 million through a joint venture and took full ownership in 2013. The firm repositioned the asset with a lobby renovation and elevator upgrade and increased occupancy to 94 percent.

Isaac Zion, Co-Chief Investment Officer with SL Green, noted he has seen growing demand for revitalized office product in downtown Brooklyn.