Weekly Real Estate News
SL Green Realty Corp. and Mori Trust have completed a $2 billion refinancing of 245 Park Avenue in Manhattan, replacing $1.768 billion in existing mortgage and mezzanine debt and advancing SL Green’s $7 billion financing plan for 2026.
The five-year, fixed-rate financing carries a 6.52% interest rate, according to SL Green’s October 19 announcement. The company hedged its share to an effective rate of 6.37%. JPMorgan Chase led the single-asset, single-borrower commercial mortgage-backed securities transaction, with Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Société Générale and Citibank participating.
A major refinancing for a fully leased office tower
The 44-story property spans approximately 1.8 million square feet between East 46th and East 47th Streets near Grand Central Terminal. SL Green reports that the tower is fully leased, with tenants including Société Générale, Ares Management, Houlihan Lokey, Carlyle and EQT Partners.
Although the $2 billion financing was reported as being arranged earlier in October, the company’s October 19 release confirmed the refinancing and its final disclosed terms. The distinction matters: this is a newly confirmed financing milestone, not the first public indication that a loan was in the works.
What the financing says about office capital markets
The transaction highlights the ability of a fully leased, high-profile Manhattan office property to attract substantial institutional debt financing. It should not, however, be read as proof that financing conditions have improved equally across the broader office market, where property quality, occupancy and location can produce very different outcomes.
The refinancing increases the principal amount relative to the debt being replaced by approximately $232 million, before financing costs and other adjustments. SL Green said the transaction supports liquidity, balance-sheet management and maturity extensions.
Redevelopment continues into 2027
SL Green and Mori Trust are also undertaking a redevelopment designed by Kohn Pedersen Fox. The project includes new lobbies, a redesigned plaza, façade work, fitness and wellness facilities, rooftop amenities and infrastructure upgrades. The company expects completion in the first quarter of 2027.
SL Green President and Chief Investment Officer Harrison Sitomer said the refinancing reflects demand for high-quality New York office assets and brings the company’s 2026 financing plan close to completion.
Source: SL Green Realty Corp., October 19, 2026.
