SL Green Realty Corp Closes $1.65B Refinancing of One Madison Avenue in Largest US Office CMBS Deal in 12 Months

SL Green Realty Corp has closed a $1.65 billion refinancing of One Madison Avenue, a 1.37-million-square-foot office tower in Midtown South Manhattan, the company announced March 25. The transaction represents the largest U.S. office commercial mortgage-backed securities (CMBS) issuance in the past 12 months, according to SL Green.

The five-year, fixed-rate single-asset, single-borrower (SASB) CMBS loan was priced at 181 basis points above the U.S. Treasury index, yielding 5.81%. A lending consortium led by Wells Fargo, with participation from Goldman Sachs, J.P. Morgan, Bank of America, Deutsche Bank, and Crédit Agricole, originated the loan.

Commercial Real Estate Financing Details

The refinancing replaces a $1.25 billion construction facility that carried a $1.171 billion outstanding balance. According to SL Green, loan proceeds will be allocated as follows: $1.18 billion to refinance existing debt, $136 million to fund upfront reserves for landlord obligations and free rent, $11.1 million for ICAP reserves, $307.9 million to return equity to sponsors, and $15 million toward closing costs.

The transaction is expected to close in the first quarter of 2026. SL Green stated the deal will "strengthen our balance sheet and extend our debt maturity profile."

One Madison Avenue Office Property Profile

One Madison Avenue is a 1.37-million-square-foot office tower located in Midtown South, overlooking Madison Square Park. The property combines a renovated nine-story historic podium with a new 550,000-square-foot tower, representing one of New York City's most significant adaptive reuse office projects. The building is 100% leased to tenants described by SL Green as major firms in the technology and finance sectors.

The property is held through a joint venture comprising SL Green Realty Corp, the National Pension Service of Korea, Mastern Investment Management, and Hines Interests Limited Partnership.

SL Green's 2026 Capital Plan and Office Real Estate Strategy

The One Madison Avenue refinancing brings SL Green's total 2026 financing and refinancing activity to more than $4.5 billion, advancing the company's stated $7.0 billion financing plan for the year. SL Green is Manhattan's largest office landlord.

The transaction's significant oversubscription, as noted by SL Green, signals continued investor demand for high-quality, fully leased office assets. The 5.81% fixed rate locks in financing costs for a five-year term, providing cost certainty amid ongoing interest rate variability in the broader commercial real estate financing market.

The deal underscores a distinction that has emerged in the office real estate sector's uneven recovery: trophy assets with full occupancy and institutional-quality tenants in premier locations continue to attract debt capital at competitive terms, while secondary and tertiary office properties face more constrained financing conditions.

Market Context for Office Real Estate Financing

The CMBS execution — structured as a single-asset, single-borrower transaction — reflects a format that has gained traction for large-scale, high-quality office real estate assets, allowing lenders and investors to underwrite a specific property's cash flows rather than a diversified pool. The involvement of six major financial institutions in the origination consortium further illustrates the depth of institutional appetite for well-leased, Class A office product in core urban markets.

For SL Green, the refinancing advances a broader real estate development and capital management strategy centered on its Manhattan office portfolio. By returning $307.9 million of equity to joint venture sponsors and extending its debt maturity profile, the company positions itself with additional liquidity for potential future real estate acquisitions or capital deployment across its portfolio.

About SL Green Realty Corp

SL Green Realty Corp (NYSE: SLG) is a real estate investment trust focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. The company is Manhattan's largest office landlord.

Sources: SL Green Realty Corp press release via GlobeNewswire, March 25, 2026.