SL Green Completes $600M Refinancing Of Construction Facility at 410 Tenth Ave.
Real Estate In-Depth | September 2020
NEW YORK—SL Green Realty Corp reported on Sept. 8 it had closed on a new $600-million construction facility for its 410 Tenth Ave. project. SL Green is redeveloping the 636,000-square-foot office building that is anchored by Amazon and First Republic Bank.
The loan was provided by a consortium of domestic and international banks led by Goldman Sachs and Wells Fargo Bank, N.A.
At closing, the new five-year facility repatriated $33.9 million of capital previously invested into the project by SL Green and will fund all future capital through completion. This facility replaces the previous $465-million construction facility that was put in place in 2019.
“This financing reflects the global capital market’s continued confidence in Class-A, quality Manhattan office assets with strong, credit rated tenants, and specifically exemplifies the resiliency of New York City,” said Andrew Mathias, president of SL Green. “We now look ahead to completing this project in the third quarter of 2021, on time and on budget.”
SL Green is currently executing a comprehensive, building-wide redevelopment of the 20-story, future Class-A office building. 410 Tenth Avenue was once known as the Master Printers Building and the building’s redesign will honor its industrial heritage, the company states.
The redevelopment will include a relocation of the building’s lobby entrance from 34th Street to 33rd Street, construction of a new glass encased steel lobby paired with new nine-foot-high industrial style windows overlooking a new viewing garden, new elevators, double height storefronts and façade re-coloring. An additional highlight will be a new 5,000-square-foot roof deck along with a 3,000-square-foot tenant lounge, ideal for daily employee use and also available for tenants to host evening events. The building enjoys numerous, large terraces for tenant use. Office floors have 13.5-foot slab heights with mushroom-capped columns.
Last December, SL Green announced that Amazon had signed a new 335,408-square-foot lease at 410 Tenth Ave., which was previously known as 460 West 34th St. In April 2019, First Republic Bank signed a new 211,521-square-foot lease at the property.
As of June 30, 2020, SL Green held interests in 96 buildings totaling 41 million square feet. This included ownership interests in 28.7 million square feet of Manhattan buildings and 11.2 million square feet securing debt and preferred equity investments.