New $2 Billion Mortgage Set for 245 Park Avenue
New York City office building owners will finalize a $2 billion loan agreement for the major Midtown property on October 20.
Updated on Oct. 7, 2026 in Commercial
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SL Green Realty and Mori Trust Holdings are finalizing a $2 billion fixed-rate mortgage for the 44-story office tower at 245 Park Ave. The transaction is scheduled to close on October 20, 2026, marking a significant refinancing effort for the 1.8 million-square-foot property.
Why it matters
This financing transition allows the property owners to retire $1.7 billion in existing debt while funding extensive capital improvements. By securing this liquidity, the owners are positioning the building to address nearly $227 million in landlord obligations and ongoing redevelopment costs.
The transaction includes $31.6 million in cash equity alongside the $2 billion loan. These funds cover $169.9 million in total redevelopment costs for the LEED Gold-certified office tower.
The players
SL Green Realty
A prominent New York City commercial landlord that manages a large portfolio of office space.
Mori Trust Holdings
A global real estate investment firm that holds a 49.9 percent stake in the 245 Park Avenue asset.
JPMorgan Chase Bank
A major financial institution and one of the co-originators of the new mortgage loan.
The details
The loan will be co-originated by a syndicate of financial institutions, including JPMorgan Chase, Bank of America, and Citi Real Estate Funding. The new capital provides the necessary funding for $119.1 million in tenant rent concessions and $81.3 million in tenant improvement allowances. These measures are designed to maintain the building's current status as a fully leased asset in the Midtown market.
Timeline
2018: SL Green Realty acquired the office building.
2023: Mori Trust purchased a 49.9 percent stake in the property.
September 2026: The lease for Rabobank at the property reached its expiration.
October 20, 2026: The mortgage loan transaction is scheduled to close.
Money Landscape
This refinancing reflects the ongoing trend of major property owners in New York City prioritizing high-efficiency LEED Gold certification to maintain premium asset valuations. The deal underscores the continued focus on long-term capital stability for Midtown office towers during the current economic cycle.
While this commercial loan does not directly adjust household mortgage rates, it signals confidence in the Midtown office market and the ongoing demand for premium office space. Those invested in real estate or property-related funds should monitor how such large-scale refinancing impacts local tax bases and office occupancy trends.
The takeaway
Large-scale commercial refinancings like this often signal a period of significant capital reinvestment in local properties. Keep an eye on regional real estate performance metrics as indicators of potential shifts in the commercial property tax environment that may eventually affect municipal services.
Further reading
For broader trends in the local market, visit New York City Commercial.
Source note: This article includes information reported by Commercial Property Executive.
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