SL Green Secures $1.65B Refinancing for One Madison Avenue — SL Green Realty Corp.

Event summary

SL Green refinanced One Madison Avenue for $1.65 billion, replacing a $1.25 billion construction facility with an outstanding balance of $1.171 billion.
The five-year, fixed-rate financing was priced at 5.81%, 181 basis points above the US Treasury index.
The transaction was oversubscribed, with participation from Wells Fargo, Goldman Sachs, J.P. Morgan, Bank of America, Deutsche Bank, and Crédit Agricole.
One Madison Avenue is 100% leased to tenants including IBM, Franklin Templeton, and Palo Alto Networks.
The refinancing is part of SL Green's $7.0 billion financing plan for 2026.

The big picture

SL Green's $1.65 billion refinancing of One Madison Avenue highlights strong liquidity for prime office assets, even in volatile markets. The transaction, significantly oversubscribed, reflects investor confidence in high-quality properties with stable tenant rosters. This deal is part of SL Green's broader strategy to strengthen its balance sheet and extend debt maturities, positioning it for long-term stability in a shifting commercial real estate landscape.

What we're watching

Market Liquidity: How sustained investor demand for high-quality office assets will affect future refinancing terms.
Debt Maturity: Whether SL Green can meet its $7.0 billion financing plan for 2026 amid market volatility.
Office Space Demand: The pace at which adaptive reuse projects like One Madison Avenue can maintain high occupancy rates.