BXP, Inc. has obtained a $1.2 billion construction loan to advance the development of 343 Madison Ave., a planned 46-story office tower in Midtown Manhattan. The project is designed to deliver approximately 930,000 square feet of office space and will have direct access to Grand Central Terminal’s Madison Concourse, positioning the building as a transit-connected asset within one of Manhattan’s core business districts.
The total development is expected to cost about $2 billion, and BXP currently anticipates completing the tower in 2029. According to the company, the project is roughly 50% pre-leased at this stage, providing a measure of income visibility as construction proceeds. The new tower is being pursued as a modern office asset in a submarket that remains a focal point for corporate users seeking proximity to regional and commuter rail connections.
The construction financing features a four-year initial term, with an additional one-year extension option available subject to customary conditions. The loan was closed on what BXP described as highly competitive terms, including an initial interest rate of Term SOFR plus 2.50%. The spread is structured to step down to Term SOFR plus 2.25% if certain leasing and construction milestones are achieved over the course of the project, tying loan pricing to execution on both development and leasing benchmarks.
In a statement, Mike LaBelle, executive vice president and chief financial officer of BXP, noted that completing the financing underscores both lender confidence in the 343 Madison Ave. project and in BXP’s broader development platform, as well as the company’s ability to secure attractive terms in the current capital markets environment. The combination of a large loan commitment, milestone-based pricing incentives, and a partially pre-leased profile highlights lender focus on high-quality, well-located office developments.
The lending group for the construction facility is composed of a consortium of major financial institutions. Wells Fargo Bank is serving as administrative agent, with BofA Securities, The Bank of New York Mellon Corporation and JPMorgan Chase Bank acting as joint lead arrangers. Banco Bilbao Vizcaya Argentaria, Landesbank Baden-Wurttemberg, PNC Bank and U.S. Bank are documentation agents, while BBVA is designated as sustainability agent. Legal counsel on the transaction was provided by Fried Frank for BXP and Riemer Braunstein for Wells Fargo, reflecting a complex, multi-party structure typical of large-scale office development financing in major urban markets.
