Developer SL Green has obtained a $1.5-billion construction loan for its 1,401-foot-tall, 58-story One Vanderbilt mixed-use office tower in Midtown Manhattan.
Wells Fargo is leading the funding, and SL Green said that TD Bank has already signed a lease for 200,000 square feet and will open a flagship branch in the building. In the past, SL Green has said it would look to joint-venture investment to finance the rest of the project, according to 6sqft.
- The Kohn Pederson Fox–designed high-rise, which will cost $3.1 billion to build, will go up next door to Grand Central Terminal and will feature retail space and underground access to the station.
Developers will provide approximately $210 million of infrastructure improvements — Grand Central access included — in connection with the tower's construction. Building should start in 2017 with completion scheduled for 2020.
SL Green recently settled a lawsuit with Grand Central's owner, Midtown TDR Ventures, over 1.2 million square feet of air rights over the historic terminal. According to The New York Times, Midtown bought Grand Central in 2006, planning to profit from the sale of its air rights. SL Green and Midtown were in negotiations for those rights when the city rezoned the area around Grand Central, which allowed SL Green to go ahead with its plans for One Vanderbilt without having to pay Midtown up to an estimated $880 per square foot.
SL Green awarded the construction contract to AECOM subsidiary Tishman Construction earlier this year. Tishman will lead SL Green's efforts to secure LEED certification for One Vanderbilt. SL Green has said the tower's design will "fit seamlessly" with that of the iconic Chrysler Building, located nearby.