On Tuesday, SL Green Realty Corp. announced that it has successfully completed a mortgage modification and extension for 220 E. 42nd St., also known as the Daily News Building, in partnership with its joint venture partner. The original $510-million mortgage was set to mature this month and was provided by a lending group led by Aareal Capital Corp., Citi, and Credit Agricole in 2020.
As part of the modification agreement, the principal balance of $510 million has been reduced to $496.4 million through a paydown of $9 million. Additionally, the maturity date has been extended by more than three years to December 2027 while maintaining an interest rate of 2.75% over term SOFR (Secured Overnight Financing Rate). This rate has been fixed at 6.77% until maturity.
Harrison Sitomer, Chief Investment Officer at SL Green stated that this extension is evidence of their strong relationships with lenders and their confidence in prime Manhattan office properties like theirs.
The lending group received advisory services from Doug Middleton at CBRE during this process.
