SL Green's Manic Monday: Big Leases, Acquisitions, Loans
Want to get a jump start on upcoming deals? Meet the major New York City players at one of our upcoming events!
SL Green revealed a slew of news Monday, announcing major leases at Manhattan properties and its first acquisition in the Hudson Yard area.
At its Midtown East supertall, One Vanderbilt, TD Securities has become the latest tenant, signing a lease for 119K SF across two and a half of the podium floors at the base of the building, according to a release.
TD Securities is an arm of TD Bank, which has already signed on as the anchor tenant, taking 200K SF back in 2014. In addition to the space at One Vanderbilt, TD Securities is taking 52K SF across two floors of 125 Park Ave., which is also owned by SL Green.
Along with TD Securities, SL Green signed three other leases. MFA Financial is taking 30K SF there, and McDermot Will & Emery is adding 10K SF to its 140K SF lease. SL Green itself will set up its headquarters in the building across 70K SF.
The four leases bring the building to 52% leased. SL Green said the leases and construction progress mean it was able to refinance its construction loan, with improved terms. It increased its facility size from $1.5B to $1.7B and is decreasing the interest rate by 75 basis points.
The company also announced that it had scored $150M in financing at 2 Herald Square, reportedly from MUFG Union Bank, and that it has sold a 49% interest in the building to an Israeli institutional investor.
At that building, it signed four leases spanning a total of 117K SF, including a deal to convey a 30-year leasehold on a 95K SF condominium to Mercy College.
SL Green, the city’s biggest office landlord, is also in acquisition mode. It is buying a majority stake in 460 West 34th St. — previously known as the Master Printers Building — in Hudson Yards from the Kaufman Organization, in a deal that values the building at $440M.
There, SL Green plans to embark on a redevelopment that will involve creating a new building entrance, new elevators and the “activation” of roof setback terraces.
“We believe this is an incredible opportunity for SL Green to reposition the building as a creative alternative, which will appeal to tenants seeking a high design industrial vibe with modern infrastructure while also being highly competitive in location, amenities and rent,” SL Green Director of Leasing and Real Property Steven Durels said.
CORRECTION, DEC. 4, 11:30 A.M. ET: SL Green is buying a majority stake in 460 West 34th St. A earlier version of this story misidentified the address of the building. This story has been updated.