SL Green JV Lands $500M for Manhattan Office Tower

919 Third Ave. Image courtesy of CommercialEdge

SL Green Realty Corp., in partnership with an institutional investor advised by J.P. Morgan Global Alternatives, has refinanced the 1.5 million-square-foot 919 Third Ave. in Midtown Manhattan.

Aareal Capital Corp., together with Credit Agricole Corporate and Investment Bank, issued the $500 million loan that carries an interest rate 250 basis points over Term SOFR, which the ownership converted into a fixed rate of 6.11 percent. The three-year note allows for two one-year extension options.

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According to CommercialEdge, the property’s previous debt consisted of a $500 million mortgage jointly provided by Metropolitan Life Insurance Co. and Pacific Life Insurance Co. The 12-year loan was to mature this year in June.

CBRE Vice Chairmen James Millon and Tom Traynor, along with Vice President Mark Finan, played an advisory role in the current transaction.

A sustainable office landmark

Designed by Skidmore, Owings & Merrill, the Class A, 47-story office building came online in 1970 and was most recently renovated in 2022. A revamped lobby and upgraded entrances, as well as on-site parking, banking facilities and dining options are among the amenities at the property.

The tower also incorporates sustainable features, including HVAC systems equipped with MERV-16 media filters, mechanical systems for air filtration and a WellStat monitor for indoor air quality. Additionally, the materials that were used in its construction adhere to LEED standards, are sourced responsibly, made from recycled materials and are free from any harmful toxins.

The property was 80 percent leased at the time of closing. Its tenant roster includes Bloomberg LP, Shulte Roth & Zabel LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC.

Manhattan closed the first quarter of the year with a vacancy rate of 16.50 percent, marking a 50-basis-point increase over the month, the latest CommercialEdge report reveals. With an asking rent of $74.22 per square foot, the borough remained the priciest office market nationwide.