SL Green Hopes To Close On A $1.5B Construction Loan For $3B One Vanderbilt Tower By End Of Summer

SL Green Realty projects its huge One Vanderbilt office tower will cost just north of $3B in total, and says it hopes to fund the project with a roughly equal mix of debt and equity.

SL Green hopes to close on a $1.5B construction loan by the end of the summer, and will try to find a partner to help cover the roughly $1.65B in equity that’ll be needed for the project, The Real Deal reports.

The city’s largest office landlord is in discussions with potential JV partners for the planned 65-story, 1.7M SF building that’ll rise over 1,500 feet next to Grand Central Terminal.

SL Green CEO Marc Holliday, speaking at NAREIT’s REITWeek 2016 Investor Forum, said leasing the building won’t be a problem, but nonetheless a “project of this size does present an element of risk,” and therefore SL Green would like to have a partner on the project.

Just yesterday, New York Life Insurance Co signed a 10-year lease at SL Green’s 420 Lexington Ave for 115k SF, and SL Green execs say leasing demand from financial services tenants remains solid, generally speaking. [TRD]

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