BXP Closes $1.2 Billion Construction Loan for 343 Madison Avenue Tower in Midtown Manhattan

BXP, Inc. (NYSE: BXP) has closed a $1.2 billion construction loan for 343 Madison Avenue, a planned 46-story, approximately 930,000-square-foot office tower in Midtown Manhattan, the company announced July 28. The financing represents a major step in capitalizing the roughly $2 billion development, which is expected to deliver in late 2029 and will offer direct access to Grand Central Terminal's Madison Concourse.

Loan Structure and Lending Syndicate

The construction facility carries a four-year initial term with a one-year extension option subject to customary conditions. The loan is priced at Term SOFR plus 2.50%, with a rate step-down to Term SOFR plus 2.25% upon the achievement of specified leasing and construction milestones.

Wells Fargo Bank, N.A. served as Administrative Agent on the transaction. BofA Securities, Inc., The Bank of New York Mellon Corporation, and JPMorgan Chase Bank, N.A. acted as Joint Lead Arrangers. Banco Bilbao Vizcaya Argentaria (BBVA), Landesbank Baden-Wurttemberg, PNC, and U.S. Bank N.A. participated as Documentation Agents. BBVA also served as Sustainability Agent on the deal.

Fried Frank provided legal counsel for BXP, while Riemer Braunstein represented Wells Fargo.

"We are pleased to complete this financing, which reflects the quality of 343 Madison Avenue, continued confidence in BXP's development platform, and our ability to secure attractive financing terms in today's market," said Mike LaBelle, Executive Vice President and Chief Financial Officer of BXP. "This transaction advances one of our most compelling value-creation opportunities, strengthens our financial flexibility, and supports our strategy to deliver long-term value for our shareholders."

Pre-Leasing and Development Status

BXP reports that approximately 50% of the building is pre-leased, with discussions for additional tenant commitments underway. Confirmed tenants include McDermott Will & Schulte. The tower is positioned as one of the few newly delivered premier office properties expected in Midtown Manhattan over the next several years, according to BXP.

The project is designed by Kohn Pedersen Fox and will feature a hospitality-forward amenity program. A double-height client club on the top floors will include indoor and outdoor dining and collaboration spaces, with terraces and views over Midtown. Additional amenities include a lobby café, bicycle storage, and shower facilities with cabanas. Specialty floors will offer private terraces and elevated ceiling heights.

Sustainability and Certifications

343 Madison Avenue is designed as a fully electric building with zero on-site combustion and a high-efficiency direct outside air system. BXP is targeting LEED Platinum, WELL Core, Energy Star 85+, Fitwel, and WiredScore Platinum certifications for the project.

BXP's Broader Capital Strategy

The construction loan closing follows a period of active asset dispositions by BXP. The company sold eight consolidated properties in 2025 for approximately $702.6 million, generating net proceeds of roughly $682.5 million. Recent transactions include the sale of The Lofts at Atlantic Wharf, an 86-unit residential property at 530 Atlantic Avenue in Boston, for $55 million; a 280-unit apartment asset in Cambridge for $170 million; and a 409,000-square-foot office campus in Needham for $132 million. Those dispositions have been part of BXP's effort to recycle capital toward new development activity, including 343 Madison Avenue.

The loan's pricing structure mirrors other BXP construction financings. The company previously arranged a $225 million construction facility, also priced at Term SOFR plus 2.50%, for 290 Coles Street, a 670-unit residential joint venture project in Jersey City.

As of June 30, 2026, BXP's portfolio — including properties owned by unconsolidated joint ventures — totaled 51.1 million square feet across 164 properties, including six under construction or redevelopment. The company operates across six markets: Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C. BXP is organized as a real estate investment trust and has been developing and managing commercial properties for more than 55 years.

Sources

BXP, Inc. — News Release: BXP Secures $1.2 Billion Construction Loan for 343 Madison Avenue