Dive Brief:
- SL Green, the developer of the $3 billion One Vanderbilt skyscraper next to Grand Central in midtown Manhattan, has raised $525 million for the project by taking on minority stakeholders, Commercial Property Executive reported.
- The national Pension Service of Korea and developer Hines Interest LP now own 27.6% and 1.4%, respectively, making it possible for SL Green to achieve its capitalization objectives for the project.
- The deal allowed SL Green to retain 71% ownership while, at the same time, decreasing its capital spend.
Dive Insight:
SL Green managed to secure a $1.5 billion construction loan last September for One Vanderbilt, even though the commercial credit market has been notoriously tight. Wells Fargo led the financing package, but SL Green's chances were probably helped along by locking in TD Bank as a 200,000-square-foot anchor tenant. The bank also said it will build out a flagship branch in the building.
SL Green broke ground on the 1.7-million-square-foot "supertall" back in October after it settled a legal dispute for an undisclosed sum with the owner of Grand Central Station, Midtown TDR Ventures, which valued air rights over the iconic transportation hub at $880 per square foot. Midtown and SL Green were in negotiations for those air rights when the area was rezoned, cutting Midtown out of the picture. In exchange for the rezoning, SL Green agreed to spend $220 million on infrastructure improvements around Grand Central.
SL Green tapped AECOM subsidiary Tishman Construction last year as general contractor, and the project will pursue LEED certification.
