SL Green Refinances 245 Park Avenue for $2.0 Billion

The new financing replaces $1.768 billion of mortgage and mezzanine debt at the fully leased Manhattan office tower.

Rhea-AI Summary

SL Green Realty (NYSE: SLG) and its partner, a U.S. affiliate of Mori Trust, refinanced 245 Park Avenue for $2.0 billion. The five-year financing carries a fixed interest rate of 6.52%, priced 147 basis points above the U.S. Treasury index. SL Green hedged its share to an effective rate of 6.37%. The new loan replaces $1.768 billion of mortgage and mezzanine financing.

The 1.8 million-square-foot office tower is 100% leased. SL Green said the transaction brings its $7.0 billion 2026 financing plan near completion, generates incremental liquidity and extends debt maturities. Redevelopment of the property is expected to be completed in the first quarter of 2027.

5 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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How the balance worksHow Sentiment works

1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point$2.0 billion refinancing replaces $1.768 billion of mortgage and mezzanine financing at 245 Park Avenue. 60% of market cap
• Moderate point$7.0 billion 2026 financing plan nears completion; SL Green says the transaction adds liquidity and extends maturities. 2.1× market cap
• Minor point6.37% effective interest rate secured through hedging on SL Green’s share, below the financing’s 6.52% rate.
• Minor point245 Park Avenue is 100% leased, with rents SL Green describes as higher than under prior ownership.
• Minor point. Forward-looking: it has not happened yet and may not happen.Property redevelopment is expected to be completed in the first quarter of 2027.

Negative

• Major pointFive-year debt obligation carries a fixed 6.52% interest rate, 147 basis points above the U.S. Treasury index.

Key Figures

Refinancing: $2.0 billion Financing term: Five years Interest rate: 6.52% +4 more

Refinancing

$2.0 billion

245 Park Avenue

Financing term

Five years

Fixed-rate financing

Interest rate

6.52%

Financing rate

Hedged effective interest rate

6.37%

SL Green's share of the financing

Spread

147 basis points

Above the US treasury index

Previous financing replaced

$1.768 billion

Mortgage and mezzanine financing on the property

2026 financing plan

$7.0 billion

Company said the plan was nearing completion

Historical Context

1 past event · Latest: Sep 14

1 event

1. Sep 14

   Office lease

   24h Move

   -2.1%

   A new 8-year lease for 37,563 square feet brought 245 Park Avenue to 100% leased.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sasb, cmbs, basis points, mezzanine financing

4 terms

sasb financial

"single asset, single borrower (SASB) CMBS execution"

SASB stands for the Sustainability Accounting Standards Board, an organization that created industry-specific guidelines for companies to report environmental, social and governance factors that are likely to affect their financial performance. Think of it as a standardized checklist that helps investors compare how well different companies manage risks like pollution, labor practices or product safety — similar to using a common recipe so you can fairly judge different cooks. Clear, consistent SASB disclosures make it easier for investors to spot hidden risks and long-term value drivers.

cmbs financial

"single asset, single borrower (SASB) CMBS execution"

Commercial mortgage-backed securities (CMBS) are financial products made by bundling many commercial real estate loans — such as those on office buildings, shopping centers, and apartment complexes — and selling pieces of that bundle to investors. Think of it like a fruit basket: each investor owns a share of many loans rather than one property, so returns come from the borrowers’ mortgage payments and the value of the underlying properties; investors watch CMBS for steady income but also for sensitivity to property market conditions, tenant occupancy and interest rates.

basis points financial

"priced at a spread of 147 basis points above the US treasury index"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

mezzanine financing financial

"the property's previous $1.768 billion of mortgage and mezzanine financing"

Mezzanine financing is a hybrid form of capital that sits between a company’s senior loan and its ownership, typically structured as a subordinated loan or convertible instrument that pays higher interest and may include rights to convert into equity. Think of it like a second mortgage or a booster seat: it carries more risk than the main loan but is less permanent than selling shares. It matters to investors because it can boost returns for lenders, increase a company’s debt burden, and potentially dilute equity if converted, influencing risk and reward.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company’s $7.0 Billion Financing Plan Nears Completion

NEW YORK, Oct. 19, 2026 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, and its partner, a U.S. affiliate of Mori Trust Co., Ltd, today announced a $2.0 billion refinancing of 245 Park Avenue. The five-year, fixed rate financing was priced at a spread of 147 basis points above the US treasury index, resulting in an interest rate of 6.52%. SL Green hedged its share of the financing to an effective interest rate of 6.37%. The single asset, single borrower (SASB) CMBS execution was agented by world class institutions led by JPMorgan Chase Bank, N.A., with participation from Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Société Générale and Citibank. The new financing replaces the property's previous $1.768 billion of mortgage and mezzanine financing.

The 1.8 million-square-foot office tower located between East 46^th and East 47^th Streets is 100% leased, with a tenant roster that includes leading financial services and investment firms such as Société Générale, Ares Management, Houlihan Lokey, Carlyle and EQT Partners.

“We set out to transform 245 Park Avenue into one of the most sought-after addresses in East Midtown, and the results speak for themselves. The building is 100% leased at significantly higher rents than under prior ownership following a robust repositioning plan, and the strength of the capital markets for high-quality New York office is evident in this financing,” said Harrison Sitomer, President and Chief Investment Officer of SL Green. “This transaction brings our $7.0 billion 2026 financing plan to near completion, generating incremental liquidity, strengthening our balance sheet and extending our debt maturities.”

245 Park Avenue is a 44-story, Class A office tower occupying an entire block along one of Midtown Manhattan’s most prominent commercial corridors. Situated directly across from Grand Central Terminal, the property offers convenient access to the city’s transportation network.

SL Green, together with its partner and architecture firm Kohn Pedersen Fox, has undertaken a comprehensive redevelopment of 245 Park Avenue, repositioning the property as one of Park Avenue’s most desirable assets. The transformation includes two new lobbies, an expansive plaza renovation, a jewel-like terra-cotta overclad of the Park Avenue façade, an exclusive fitness and wellness center, and a rooftop amenity, along with a full modernization of the building’s infrastructure. Completion is expected in the first quarter of 2027.

About SL Green Realty Corp.
SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of June 30, 2026, SL Green held interests in 54 buildings totaling 30.6 million square feet, which included ownership interests in 29.2 million square feet and 1.4 million square feet securing debt and preferred equity investments, excluding fund investments, and managed 4 buildings totaling 0.9 million square feet owned by third parties.

Forward Looking Statement
This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the New York metropolitan area markets, occupancy, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
slgreen@berlinrosen.com

SLG – FIN

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of SL Green’s 245 Park Avenue refinancing?

The $2.0 billion refinancing has a five-year term and a fixed interest rate of 6.52%. SL Green hedged its share to an effective rate of 6.37%. It replaces $1.768 billion of mortgage and mezzanine financing.

Which banks arranged SL Green’s 245 Park Avenue refinancing?

JPMorgan Chase Bank led the single-asset, single-borrower commercial mortgage-backed securities financing. Bank of America, Deutsche Bank, Bank of Montreal, Goldman Sachs, Société Générale and Citibank also participated.