SL Green, the city’s largest office landlord, “pulled off one of New York’s biggest office deals of 2016” when they secured $1.5 billion in construction financing for their supertall tower One Vanderbilt, which is expected to ultimately cost a whopping $3.14 billion. The developer is now looking to rake in even more dollars off the deal, reports the Wall Street Journal, as they’ve proposed to J.P. Morgan Chase (one of the Syndication Agents in the financing) a swap out where the bank would trade its two headquarters buildings at 383 Madison Avenue and 277 Park Avenue for the recently-under-construction, 1,401-foot office tower.
As the Journal explains, SL Green has cut similar deals. Just this year, they re-sold the two buildings at 388-390 Greenwich Street to Citigroup for $2 billion. The banking company had previously owned the Tribeca complex, its headquarters, but sold it to SL Green and Ivanhoe Cambridge for $1.6 billion in 2007. They decided to buy it back “to consolidate and cut costs in the New York area.”
The pending deal with J.P. Morgan (sources say they’re considering it, though there’s been no official movement) is different since the bank doesn’t need to find a new location, but two years ago they said they’d consider moving under the right pretenses. This is when they were in talks with Related Companies about coming to Hudson Yards, a negotiation that ultimately fell through when too few subsidies were offered. Just last Monday, SL Green said it may be selling a 28% stake in One Vanderbilt to a foreign investor. It’s not clear how this would affect the J.P. Morgan deal.
- SL Green breaks ground on One Vanderbilt, NYC’s second tallest tower – see new renderings
- $1.5B in construction financing secured for Midtown supertall One Vanderbilt
- One Vanderbilt Will Cost a Whopping $3.14 Billion
- All One Vanderbilt coverage
Neighborhoods : Midtown East