SL Green Lands $600M Refi for Manhattan High-Rise Project

410 Tenth Avenue. Rendering courtesy of SL Green

SL Green is moving ahead with its redevelopment of 410 10th Ave. in Manhattan’s Hudson Yards submarket with the closing of a new $600 million construction facility. The new financing agreement replaces the $465 million construction loan obtained last year for the 636,000-square-foot office building that will be home to Amazon and First Republic Bank.

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The loan, provided by a consortium of world-class domestic and international banks led by Goldman Sachs and Wells Fargo Bank N.A., will fund all future capital of the project through its completion in the third quarter of 2021. SL Green also repatriated $33.9 million of capital previously invested in the redevelopment.

SL Green, Manhattan’s largest office landlord, acquired the 20-story building, previously known as the Master Printers Building, in May 2019 for $409.9 million. First Republic Bank was the first tenant to sign on, leasing 211,521 square feet in April prior to SL Green closing on the acquisition. In December, Amazon agreed to take 335,408 square feet to house more than 1,500 employees from its consumer and advertising teams.

Built in 1927, the tower was also formerly known as 460 W. 34th St. The building is located on Manhattan’s Far West Side, across the street from Brookfield Properties’ 5 Manhattan West, where Amazon will be leasing 360,000 square feet of space, and directly east of the Hudson Yards mixed-use megaproject.

SL Green is executing a complete, building-wide redevelopment of the property that will honor its industrial heritage, while transforming it into a modern Class A office asset. The redevelopment will include relocating the lobby entrance from 34th Street to 33rd Street, constructing a new glass-encased steel lobby paired with new 9-foot-high industrial-style windows overlooking a garden, installing new elevators, double-height storefronts and façade re-coloring. The transformation will feature a 5,000-square-foot roof deck and 3,000-square-foot tenant lounge for daily use and special events, as well as numerous large terraces for tenant use. The building will have 33,900-square-foot floorplates and 13.5-foot slab heights with mushroom-capped columns.

Andrew Mathias, SL Green’s president, said in a prepared statement the new construction loan will enable the company to complete the project on time and on budget. He said the financing reflects the global capital market’s continued confidence in Class A Manhattan office assets with credit-rated tenants.

Earlier deals

In June, SL Green closed on a $510 million mortgage financing secured by 220 E. 42nd St., a 1.2 million-square-foot-office tower in midtown Manhattan. SL Green used the proceeds to repay the balance on its $1.5 billion unsecured revolving credit facility. Also known as The News Building, the 37-story Class A office building has about 65,000 square feet of retail. 

SL Green sold a 49.5 percent interest in One Madison Avenue in May to the National Pension Service of Korea and Hines Interests for at least $493 million. The sale of the minority stake came as SL Green moved forward with plans for a $2.3 billion redevelopment of the Midtown South office property, which will have 1.4 million square feet of Class A space upon completion in 2023.

Meanwhile, the company is planning a ribbon-cutting ceremony next week at its $3 billion One Vanderbilt office tower next to Grand Central Terminal in midtown Manhattan. SL Green had preleased about 70 percent of the 1.5 million square feet of office space in the 1,401-foot tower to tenants including TD Bank, the Carlyle Group and law firms Greenberg Traurig and McDermott, Will & Emery.