SLG Locks In $1.65B Loan at 5.81% Interest
SL Green Realty Corp., Manhattan's largest office landlord, announced on March 25, 2026, the completion of a $1.65 billion refinancing for its One Madison Avenue property. The five-year, fixed-rate financing carries an interest rate of 5.81%, priced at a spread of 181 basis points over the U.S. treasury index. This new loan replaces the property's previous $1.25 billion construction facility, which had a current outstanding balance of $1.171 billion. The deal was structured as a single-asset, single-borrower (SASB) Commercial Mortgage-Backed Securities (CMBS) issuance, led by a consortium of major institutions including Wells Fargo, Goldman Sachs, J.P. Morgan, and Bank of America.
Largest Office CMBS in 12 Months Signals Market Strength
This transaction represents the largest CMBS issuance for a U.S. office building in the past year, serving as a powerful indicator of lender appetite for premier real estate. The deal was reportedly "significantly oversubscribed," reflecting robust investor demand. The property's strength is anchored by its 100% leased status, with a roster of high-credit tenants such as IBM, Franklin Templeton, and Palo Alto Networks. This strong leasing profile de-risks the asset and validates SL Green's strategy of developing high-amenity, modern workplaces to attract top-tier firms.
The strong investor demand for this transaction underscores the depth of liquidity available for high-quality office assets, even amid periods of market volatility.
— Harrison Sitomer, President and Chief Investment Officer of SL Green.
Refinancing Bolsters SLG's $7.0 Billion Capital Plan
The One Madison refinancing is a cornerstone of SL Green's larger corporate finance strategy for 2026. The company has a stated goal of executing $7.0 billion in financing activities throughout the year to strengthen its balance sheet and extend its debt maturity profile. With this deal, SL Green has now completed over $4.5 billion in financing and refinancing year-to-date. This proactive capital management, combined with a recently announced annual dividend of $2.47 per share, demonstrates the company's financial stability and commitment to delivering shareholder value while navigating the evolving real estate market.
