SL Green Realty Corp. (NYSE: SLG) shares decreased in price Wednesday. The company, Manhattan’s largest office landlord, and its partners today announced a $1.65-billion refinancing of One Madison Avenue. The five-year, fixed rate financing was priced at a spread of 181 basis points above the US treasury index, resulting in an interest rate of 5.81%. The single asset, single borrower (SASB) CMBS execution was agented by a consortium of world class institutions.
The new financing, which is expected to close in the first quarter of 2026, replaces the property’s previous $1.25 billion construction facility with a current outstanding balance of $1.171 billion.
One Madison Avenue is 100% leased with a tenant roster that includes global technology, AI and financial services firms such as IBM, Franklin Templeton Companies, Palo Alto Networks, FanDuel Group, Sigma Computing and Harvey AI.
“The strong investor demand for this transaction underscores the depth of liquidity available for high-quality office assets, even amid periods of market volatility. The transaction was significantly oversubscribed, with all classes nearly clearing year-to-date tights and executing inside current secondary spreads for several comparable New York City office SASB transactions,” said President Harrison Sitomer.
“This transaction brings us to more than $4.5 billion of financing and refinancing activity to date in 2026 in furtherance of our larger $7-billion financing plan for the year, which will strengthen our balance sheet and extend our debt maturity profile.”
SLG shares dipped 17 cents to $37.75.
