SL Green Realty signed a loan agreement with lender MUFG Union Bank valued at $75 million for 4 condominium parcels at 2 Herald Square also known as 1328 Broadway in the Garment District. The deal closed on October 7, 2019 and was recorded on October 10, 2019. MUFG Union Bank is a unit of the Mitsubishi UFJ Financial Group.
SL Green previously borrowed $150 million from MUFG Union Bank in 2018, and this $75 million is new debt secured by SL Green’s leasehold interest in 2 Herald Square. In addition to this mortgage, in an unusual move, SL Green memorialized this mortgage with notes pledged by two other SL Green buildings, 125 Park Avenue and 600 Lexington Avenue, but those notes are not secured by real property mortgages. The building owner entities are identified as “borrowers” of a portion of this $75 million loan.