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SL Green snags $220M refi for Midtown East office tower

Deal for 10 East 53rd Street refinances existing debt on the property

10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Holliday by Grant Lamos IV/Getty Images)
10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Holliday by Grant Lamos IV/Getty Images)

SL Green Realty has landed a $220 million refinancing from Wells Fargo for the office building at 10 East 53rd Street, according to the deal’s brokers.

The five-year, interest-only loan replaces $180 million in financing that Wells Fargo provided on the 37-story, 385,000-square-foot property in 2017.

Walker & Dunlop’s Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz arranged the debt.

In a statement, Appel described the property as “an exceptional investment opportunity with predictable cash flow” and noted that it was “99 percent leased.”

The property, built in 1972, was renovated by TPG Architecture in 2016 with features including a new lobby arcade and outdoor plazas. Tenants include Equinox, Compass and Italian clothing designer Ermenegildo Zegna.

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SL Green bought 10 East 53rd Street in 2012 for $252.5 million and sold a 45 percent interest in the building to Canada Pension Plan Investment Board.

SL Green declined to comment, and Wells Fargo did not respond to a request for comment.

Appel, a former heavyweight at JLL, left the brokerage with Kurland, Schwartz and Schwartz in August soon after its $2 billion merger with HFF. The brokers founded the independent shop AKS Capital Partners, which Walker & Dunlop acquired for an undisclosed price in January.

Elsewhere in its portfolio, SL Green closed on its buy of the West Side office property at 707 11th Avenue in January for $90 million and plans to redevelop the property. The firm went into contract to sell the former Daily News building at 220 East 42nd Street to Jacob Chetrit last year for $815 million. But the deal fell apart in March, when Deutsche Bank, Chetrit’s main lender, backed out amid the economic turmoil sparked by the coronavirus pandemic.

Contact Eddie Small at es@therealdeal.com

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