SL Green Refis 1515 Broadway for $900M
SL Green is on a roll with 1515 Broadway. The $900M refinancing announced today follows a $60M renovation in 2010, a buyout of its JV partner in 2011, and a major lease extension signed in 2012. Consider SL Green's strength as a sponsor, incredibly low interest rates, and Times Square's undeniably key location, and the deal makes even more sense.
From the east across 45th Street, we snapped 1515 Broadway (best known as Bisnow's NY HQ until we moved last month). When SL Green bought out SITQ in April 2011, the transaction valued the property at $1.2B--and at that two-year-old value, today's loan would mean a gutsy 74% LTV. Fried Frank's Jon Mechanic(who wasn't involved in the deal) tells us competition among lenderswasmost certainly heavy, and SL Green has never been known to get anything but the bestmarket-driven terms. The 12-year, 3.93% fixed-rate loan replaces the existing $775M mortgage, and SL Green will net $116M. Jon also says the deal comes amid an ever-more active Times Square office and retail leasing environment, including Viacom's extension of its 1.6M SF lease at 1515 Broadway through 2031.