SL Green Realty has closed on a USD900m first mortgage refinancing of 1515 Broadway.
The new 12-year, 3.93 per cent fixed rate mortgage financing replaces the former USD775m mortgage loan.
The refinancing follows the April 2012 renewal by Viacom of 1.6 million square feet at the office tower through 2031.
SL Green will recognise approximately USD116m in net proceeds from the transaction.
Andrew Mathias, president of SL Green, says: “Our ability to execute long-term fixed rate financing at historically low rates is a significant achievement and reflects both this property’s strength as well as the continuing positive evolution of Times Square. The long-term renewal of the Viacom lease, coupled with our redevelopment of the building’s lobby, common areas, retail space, and the introduction of LED signage, has created significant value.”
Skadden, Arps, Slate, Meagher & Flom acted on behalf of SL Green. Sidley Austin represented the lender group.