SL Green and Mori Trust refinanced 245 Park Avenue with a $2B, five-year fixed-rate loan. The issuer reports pricing at Treasury plus 147 basis points and a 6.52% coupon. SL Green’s hedged share carries an effective 6.37% rate.
The financing replaces $1.768B of mortgage and mezzanine debt. The $232M difference, or approximately 13.1%, is a gross increase in loan size. It does not establish net cash distributed after costs, reserves and other uses.
The tower is fully leased and undergoing a KPF repositioning expected to finish in the first quarter of 2027. Mori Trust’s 49.9% stake purchase was announced June 26, 2023.
Our read: this transaction shows financing availability for this particular fully leased Manhattan asset. The sources do not establish that leasing alone caused the terms or that comparable financing is available for partly vacant towers. Amortization, debt yield and appraised value require separate loan documentation.
Key Takeaways
- Distinguish the 6.52% loan coupon from SL Green’s 6.37% hedged share rate.
- A $232M gross loan-size increase is not verified net cash out.
- The transaction does not prove leasing causality or terms for other office assets.
SL Green — $2B five-year refinancing of 245 Park Avenue; replaces $1.768B mortgage and mezzanine debt; Treasury plus 147 basis points, 6.52% coupon, 6.37% effective rate for SL Green’s hedged share. Tower fully leased; KPF repositioning expected Q1 2027. $232M difference is gross loan-size increase, not net cash out. https://slgreen.gcs-web.com/news-releases/news-release-details/sl-green-refinances-245-park-avenue-20-billion · SL Green — Mori Trust 49.9% stake sale announcement June 26, 2023. https://slgreen.gcs-web.com/news-releases/news-release-details/sl-green-announces-sale-499-interest-245-park-avenue
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