SL Green and Mori Trust Affiliate Refinance 245 Park Avenue for $2 Billion

SL Green Realty Corp. and a U.S. affiliate of Mori Trust Co., Ltd. refinanced Manhattan’s 245 Park Avenue with a $2 billion, five-year loan, replacing $1.768 billion in debt as the property’s redevelopment continues.

The loan carries a 6.52% fixed rate and replaces mortgage and mezzanine financing. SL Green hedged its share of the new financing to an effective rate of 6.37%. The financing was priced 147 basis points above the U.S. Treasury index.

The deal is a single-asset, single-borrower commercial mortgage-backed securities transaction. JPMorgan Chase Bank, N.A., led the seven-bank lending group, which also includes Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Société Générale and Citibank.

SL Green sold a 49.9% interest in 245 Park Avenue in 2023 and carried out the refinancing with its Mori Trust partner. The Manhattan office tower spans 1.8 million square feet.

“This transaction brings our $7.0 billion 2026 financing plan to near completion,” SL Green President and Chief Investment Officer Harrison Sitomer said.

SL Green expects to complete the property’s redevelopment in the first quarter of 2027.