$1.5B in construction financing secured for Midtown supertall One Vanderbilt
It’s full steam ahead for SL Green‘s new Midtown supertall, One Vanderbilt. Early this morning the developer announced it had closed on $1.5 billion in financing for its 1,401-foot, full-block office tower slated to rise directly adjacent to Grand Central Terminal. As SL Green Managing Director, Robert Schiffer expressed in a statement: “Closing on the construction financing means that nothing stands in the way of One Vanderbilt becoming an iconic addition to the Manhattan skyline.”
As 6sqft previously reported, the Kohn Pedersen Fox-designed tower is expected to cost $3.1 billion to construct. SL Green announced in June that it was in the process of securing a construction loan for roughly half of the amount and that it hoped to fund at least half of the remaining $1.64 billion through joint venture alternatives, yielding a 50 percent stake.
As it stands, the construction financing is being led by Wells Fargo Bank, as Administrative Agent, The Bank of New York Mellon, JP Morgan Chase Bank, TD Bank and Bank of China, as Syndication Agents, and Landesbank Baden-Württemberg as Documentation Agent. The loan has a term of up to seven years and bears interest at a floating interest rate of 3.50 percent over LIBOR, with the ability to reduce the spread to 3.00 percent upon achieving certain pre-leasing and completion milestones. SL Green has long expressed confidence that it will have no issue leasing the tower’s 1.6 million square feet of space; TD Bank has already signed on for 200,000 square feet and will also provide a flagship retail branch at the base.
Demo of the existing buildings on the site started earlier this year and construction on the new edifice is expected to begin in 2017. In addition to bringing 58-floors of Class A office space and retail to East Midtown, One Vanderbilt will also provide new and direct underground access to Grand Central Terminal and a number of other local infrastructure improvements totaling $210 million. The building is slated to open in 2020 and when complete it will be the tallest tower in Midtown and the second tallest tower in the city.
“One Vanderbilt will set a new standard for trophy buildings in Midtown Manhattan,” said SL Green’s Robert Schiffer. “It will respond to the needs of the modern workforce, offering tenants technologically advanced, Class A office space with best-in-class amenities and unparalleled proximity to public transportation.”
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Renderings by DBOX