SL Green, Partners To Cash Out $308M From Huge One Madison Loan
The owners of a recently built office tower next to Madison Square Park are cashing in on Wall Street's appetite for trophy Manhattan office buildings.
SL Green has teed up a nearly $1.7B CMBS loan to refinance One Madison Ave., a historic building it redeveloped during the pandemic into a 1.4M SF trophy office and retail building and has fully leased, according to a report from Fitch Ratings.
The debt, provided to the ownership group of SL Green, the National Pension Service of Korea, Mastern Investment Management and Hines, refinances the nearly $1.2B left on the project's construction loan, funds a $136M reserve to cover free rent and tenant improvements, and allows the owners to extract $307.9M of equity.
The debt is being underwritten by a group of major banks: Wells Fargo, Goldman Sachs Mortgage Co., JPMorgan Chase, Bank of America and Deutsche Bank's U.S. lending arm. It is expected to close April 7, according to Fitch.
An SL Green spokesperson declined to comment.
The building was originally developed as an annex for the historic Metropolitan Life Insurance Co. clocktower next door. It was rebuilt in 1953 into a 14-story, brick podium structure with wedding cake setbacks.
SL Green, Manhattan's largest office landlord, acquired the building in 2005 when it was fully leased to Credit Suisse, which vacated down the block to 11 Madison Ave. In 2020, it hired Kohn Pederson Fox to design a redevelopment that would add a glassy tower atop the podium.
The REIT signed Franklin Templeton and IBM as One Madison's anchor tenants before the building opened — each occupies roughly 350K SF, and they combine to take up more than half of the property. Michelin-starred chef Daniel Boulud opened his first steakhouse on the ground floor, and a 12K SF rooftop event space presents another high-touch amenity.
In recent years, the building has filled with tenants from the technology sector. Coinbase announced this month that it is opening a 1,000-worker research hub at One Madison. It signed a 64K lease in 2024, but Fitch's report on the CMBS loan says it now leases 160K SF and is the building's fourth-largest tenant.
Harvey AI this month expanded its lease at One Madison by 93K SF, taking the last available office space in the building and bringing its footprint to 189K SF.
SL Green being able to cash out on One Madison is the latest win in a streak of them for Manhattan's largest office owner.
It has been rapidly executing its plan to sell $2.5B of properties to generate cash and help bring down its debt. It also refinanced 11 Madison last year with a $1.4B CMBS loan and signed more than 830K SF of leases in the first two months of 2026.
The $1.7B loan also continues a trend of major Manhattan office owners finding success in the securitized debt market. More than $115B of CMBS loans were handed out in NYC last year, the most since 2007. That has continued this year, with Brookfield refinancing 225 Liberty St. for $800M last month.
