M&T Bank, Natixis Co-Lead $195M NYC Office Refi

SL Green, New York City’s largest office landlord, and PGIM, the global investment management arm of Prudential Financial, purchased Tower 46 in 2014, with the help of a bridge loan from Wells Fargo.
Tower 46
Tower 46

M&T Bank and Natixis have teamed up to arrange a $195 million loan for SL Green Realty Corp. and PGIM Inc., to refinance 55 W. 46th St., a 347,694-square-foot Class A office building in Midtown Manhattan.

M&T Bank served as administrative agent and Natixis is the co-lead on the senior loan that will provide capital to complete the lease-up of the building.

Known as Tower 46, the building was completed in 2013 and acquired by SL Green, New York City’s largest office landlord, and PGIM, the global investment management arm of Prudential Financial Inc., in 2014 for $295 million. At that time, the owners secured a $190 million bridge loan from Wells Fargo Bank, which expired Oct. 1, according to Yardi Matrix data.

The building was purchased in an off-market transaction. SL Green President Andrew Mathias said at the time, “Being able to acquire the most valuable office space, only the tower floors, of a newly constructed office building at a price that is significantly below replacement cost is a rare opportunity.”

The property consists of a commercial condo unit comprising the top 13 floors (22-34) of the building with a dedicated entrance on 46th Street, the entire second floor, lower level fitness center for tenants, parking garage and ground floor retail suite along West 46th Street, including a Starbucks. Located in the Plaza District submarket, the property has views of the Manhattan skyline, Rockefeller Center to the north and the Empire State Building to the south.

Major tenants include Fir Tree Partners, Nixon Peabody, Comcast, Allied International and Soroban Capital Partners. Of those, Nixon Peabody, a global law firm, has the most space with 66,297 square feet, according to Yardi Matrix.

SL Green’s Midtown Deals

SL Green, along with joint venture partner RXR Realty, is expected to close this week on the purchase of a 48.7 percent increase in Worldwide Plaza, a 2 million-square-foot mixed-use property in Midtown Manhattan from New York REIT. The property spans a full block at 825 8th Ave. and includes a 1.8 million-square-foot, 49-story office tower and a 252,000-square-foot retail building.

Also in Midtown, SL Green is building One Vanderbilt, a 1.7 million-square-foot trophy office tower across from Grand Central Terminal, estimated to cost about $3.1 billion. Signed tenants include TD Bank, and more recently DZ Bank and its affiliate, DVB Bank.

Image courtesy of Yardi Matrix