SL Green Realty signs $500M refi loan with Aareal Capital for office in Midtown East
SL Green Realty through the entity 919 Ground Lease LLC as borrower signed a refi loan with lender Aareal Capital valued at $500 million for the office building (O4) at 919 3rd Avenue in Midtown East, Manhattan.
The deal closed on April 25, 2023 and was recorded on April 27, 2023. The prior lender was MetLife which held debt that had an original loan amount of $500 million.
The property has 1,323,432 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $377 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for SL Green Realty was Andrew S. Levine. The signatory for Aareal Capital was Jesse Suchoff and Margaret Laffler.
Prior sales and revenue
The 1,323,432-square-foot property generated revenue of $105.9 million or $80 per square foot, according to the most recent income and expense figures.
The property
The office building in Midtown East has 1,323,432 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 360 feet deep with a total lot size of 64,768 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $563.5 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations and $25 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on March 6, 2017. On the lot, there is one active major alteration construction project for a 1,323,432 square-foot B building. The project was submitted by Roger Merriman with plans filed December 21, 2015 and permitted May 10, 2016.
The neighborhood
In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.9 billion in sales volume in the last two years. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 16.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of six of the 12 commercial properties representing 1,357,009 square feet of the 1,415,768 square feet. The largest owner is SL Green Realty and then Lori Buchbinder.
There are no active new building construction projects on this tax block.
The majority, or 93 percent of the 1.4 million square feet of built space are office buildings, with walkup buildings next occupying 3 percent of the space.
The borrower
The PincusCo database currently indicates that SL Green Realty owned at least 34 commercial properties with 463 residential units in New York City with 18,537,300 square feet. Within the portfolio, the bulk, or 95 percent of the 18,537,300 square feet of built space are office properties, with elevator properties next occupying 4 percent of the space. They are all located in Manhattan.
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