$1.2 Billion Loan Secured for BXP’s 343 Madison Avenue Tower
Event summary
- $1.2 billion construction loan closed for 343 Madison Avenue project in Midtown Manhattan.
- Project is a 46-story, 930,000-square-foot workplace tower with completion expected in late 2029.
- Loan terms include Term SOFR plus 2.50%, reducible to Term SOFR plus 2.25% upon leasing and construction milestones.
- Approximately 50% of the building is pre-leased, with additional commitments under discussion.
The big picture
BXP’s $1.2 billion loan for 343 Madison Avenue underscores confidence in high-quality office space development amid shifting demand patterns. The project, one of the few planned premier workplace towers in Midtown Manhattan, positions BXP to capitalize on a market with constrained supply and evolving tenant preferences for sustainability and amenity-rich environments.
What we're watching
- Leasing Momentum
- How quickly BXP can secure additional leases to meet milestones and reduce the loan rate.
- Construction Timeline
- Whether BXP can deliver the project on schedule by late 2029 amid potential market or logistical challenges.
- Market Positioning
- The competitive advantage of 343 Madison Avenue in a market with limited new premier workplace towers.
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