SL Green Realty has scored a refi of a Midtown office tower, but borrowed 7 percent less against the property than when it refinanced the same building four years ago.
The Marc Holliday-led REIT landed a $205 million loan from Wells Fargo for its building at 10 East 53rd Street, according to public records.
The debt replaces a $220 million, five-year, interest-only loan provided by the same lender in 2020. Wells Fargo had provided $180 million in financing on the 37-story, 385,000-square-foot property in 2017.
The smaller refinancing this time is likely a testament to today’s higher interest rates, tighter lending environment and lower office valuations.
SL Green bought the Plaza District building in 2012 for $252.5 million and sold a 45 percent interest in the property to the Canada Pension Plan Investment Board.
The asset, 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.
A spokesperson for SL Green did not immediately respond to a request for comment.
The stock price of the REIT, which is among the city’s largest commercial landlords and invested heavily in office properties before the pandemic, has fallen by 42 percent in the past five years. However, it has risen by 143 percent in the past year.
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