SL Green Secures $1.65 Billion 5-Year CMBS at 5.81% Rate
SL Green closed a $1.65B five-year fixed-rate CMBS refinancing on One Madison Avenue at 5.81% interest, replacing a $1.171B construction loan. The oversubscribed deal marks the largest U.S. office CMBS issuance in a year and advances SL Green’s $7B 2026 financing plan.
1. Refinancing Details
SL Green closed a $1.65B five-year fixed-rate CMBS loan on One Madison Avenue at a spread of 181 bps over Treasuries, resulting in a 5.81% interest rate. The single asset, single borrower transaction replaces a $1.171B construction facility and is scheduled to close in Q1 2026.
2. Balance Sheet Impact
The oversubscribed issuance marks the largest U.S. office CMBS deal in the past 12 months and counts institutions like Wells Fargo, Goldman Sachs and J.P. Morgan among lenders. It brings SL Green’s 2026 financing activity to over $4.5B toward its $7B goal, extending debt maturities and bolstering liquidity.
3. Property Profile
One Madison Avenue is fully leased to technology, AI and financial services tenants including IBM, Palo Alto Networks and Franklin Templeton, generating stable cash flows. The adaptive reuse project offers 550,000 square feet of Class-A office space with wellness-driven amenities, 100% fresh air HVAC and retail features like Chelsea Piers Fitness.