SL Green Secures $1.65B Refinancing for One Madison Avenue

Edgen Stock

·Mar 30 2026, 16:51

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Key Takeaways

SL Green Realty Corp., Manhattan's largest office landlord, has successfully refinanced its premier One Madison Avenue property for $1.65 billion. This transaction, the largest of its kind in the past year, underscores strong institutional investor appetite for high-quality, fully-leased commercial real estate assets.

Record-Setting Deal: The $1.65 billion transaction is the largest U.S. office Commercial Mortgage-Backed Security (CMBS) issuance in the last 12 months.
Financing Terms: The five-year, fixed-rate loan was secured at an interest rate of 5.81%, priced at a spread of 181 basis points over the U.S. treasury index.
Trophy Asset Strength: The 1.4 million-square-foot office tower is 100% leased to a roster of major technology and financial services firms, including IBM and Franklin Templeton.

SL Green Lands $1.65B Refinancing at 5.81% Interest

SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, finalized a $1.65 billion refinancing for its trophy asset, One Madison Avenue. The deal was structured as a five-year, fixed-rate Commercial Mortgage-Backed Security (CMBS) loan carrying a 5.81% interest rate. A consortium of institutions led by Wells Fargo, with participation from Goldman Sachs and J.P. Morgan, agented the transaction. This new financing replaces a previous $1.25 billion construction facility, of which $1.171 billion was outstanding, and marks a significant step in recapitalizing the premier property.

Oversubscribed Deal Signals Investor Confidence in Premium Office Space

The transaction, which stands as the largest U.S. office CMBS issuance over the past 12 months, was significantly oversubscribed by investors. This strong demand demonstrates deep market liquidity for high-quality office properties, even as the broader market faces uncertainty. The successful execution highlights investor confidence in One Madison Avenue's prime location overlooking Madison Square Park and its fully leased status. The 1.4 million-square-foot building boasts a tenant roster of global technology, AI, and financial services firms, including IBM, Franklin Templeton, Palo Alto Networks, and FanDuel.

Transaction Advances SL Green’s $7.0 Billion Financing Goal

This refinancing is a key component of SL Green's larger corporate finance strategy for 2026. The deal brings the company's total financing and refinancing activity to over $4.5 billion for the year. It moves the real estate investment trust closer to its stated annual goal of $7.0 billion in financing activities, which are intended to strengthen its balance sheet and extend its debt maturity profile. According to SL Green's President and CIO, Harrison Sitomer, the strong investor interest affirms the value of premier office assets.