NEW YORK — SL Green Realty Corp. (NYSE:SLG) and Vornado Realty Trust (NYSE:VNO) have closed a $1.2 billion refinancing of 280 Park Avenue, a premier 1,250,000 square foot Manhattan office building that is held by the companies in a joint venture.
The floating rate, interest-only loan carries a rate of LIBOR plus 1.73%, currently 2.97%, and matures in September 2024, as extended. 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 refinancing comes after the lease up of the building to approximately 97%, including the addition of the world-renowned Four Seasons restaurant, following a $150 million transformational redesign and renovation of the building’s facade and interior. Included in the renovations were the creation of an expansive world-class lobby, an extensive program to enhance environmental sustainability, a complete redesign of the building’s adjacent plaza and building-wide infrastructure upgrades, including new elevator cabs and bathrooms, new thin line perimeter induction units, new electrical distribution and state-of-the-art security.
The lobby of 280 Park features 25-foot ceilings and is the most visible along Park Avenue. It connects to a new interior atrium complete with a reflecting pool.