On Tuesday, SL Green Realty Corp. announced that it has successfully modified and extended the mortgage on 220 E. 42nd St., also known as the Daily News Building, in partnership with its joint venture partner. The original mortgage of $510 million was set to mature this month and was provided by a group led by Aareal Capital Corp., Citi, and Credit Agricole in 2020.
The modification involved paying down $9 million of the principal balance, bringing it down to $496.4 million, and extending the maturity date for over three years until December 2027. The interest rate remains at a fixed rate of 2.75% over term SOFR (Secured Overnight Financing Rate), which has been locked in at an attractive rate of 6.77% until maturity.
According to Harrison Sitomer, Chief Investment Officer at SL Green Realty Corp., this extension highlights their strong relationships with lenders and showcases their confidence in prime Manhattan office properties being like fortresses.
Doug Middleton from CBRE advised the lenders during this process.
