NEW YORK CITY—SL Green Realty Corp. and Vornado Realty Trust have closed on the $1.2-billion refinancing of the 280 Park Ave. office tower.
The joint venture partners secured a floating rate, interest-only loan for the 43-story office building that carries a rate of LIBOR plus 1.73%, currently 2.97%, and matures in September 2024. The loan replaces the previous $900 million of indebtedness that bore interest at LIBOR plus 2.00% and was scheduled to mature in May 2023.
The announcement did not specify the sources of the financing. Deutsche Bank is the lender in the new refinancing deal that replaced financing provided by Deutsche Bank and the Bank of China, according to a report in the Commercial Observer.
The 1.25-million-square-foot officer tower located at the north passageway of Grand Central Terminal is currently 97% leased. The property underwent a $150-million capital improvement program that featured the redesign and renovation of the building’s facade and interior.
Included in the renovations at the property that takes up the entire block of Park Avenue from 48th to 49th Street were the creation of an expansive lobby, an extensive program to enhance environmental sustainability, a complete redesign of the building’s adjacent plaza and building-wide infrastructure upgrades (new elevator cabs and bathrooms, new thin line perimeter induction units, new electrical distribution and security enhancements).
The Four Seasons Restaurant is relocating from the Seagram Building to 280 Park Ave. and will reportedly open by this Thanksgiving.