SL Green Realty Corp. has recapitalized One Vanderbilt Avenue, its 1.7 million-sq. ft., $3.2 billion office project in Midtown Manhattan, to the tune of a half-billion dollars, Commercial Property Executive (CPE) reports.
The REIT has sold minority interests in building, which broke ground in October, to the National Pension Service of Korea and project development manager Hines Interest LP.
NPS took a 27.6 percent stake in One Vanderbilt, while Hines snapped up a 1.4 percent interest, with the new partners committing a total minimum equity investment of $525 million.
“The completion of a joint venture with NPS and Hines brings to a successful conclusion our capitalization goals for the project that we set forth on this call one year ago,” Marc Holliday, CEO of SL Green Realty Corp., said during the company’s fourth quarter 2016 earnings call on January 26.
SL Green in 2016 obtained $1.5 billion of construction financing for the 58-story structure, which, at 1,401 ft. in height, will hold the title of Midtown Manhattan’s tallest building and New York City’s second-tallest tower. “The financing allowed construction of the Kohn Pedersen Fox Associates-designed, skyline-altering building to get underway, which it did with a groundbreaking in October, CPE said.
Even with the partners, SL Green will retain 71 per cent ownership, according to the report.
General contractor Tishman Construction expects to complete the project in 2020. It will span an entire city block adjacent to Grand Central Terminal.