One Madison Avenue has secured a $1.65 billion refinancing — the largest U.S. office CMBS deal in the past 12 months — as lenders signal they are still willing to back fully leased, prime assets even as much of the office market struggles to attract capital.

The financing replaces a previous $1.25 billion construction loan tied to the redevelopment of the property and was priced at a spread of 181 basis points over U.S. Treasurys, resulting in an all-in rate of 5.81%. SL Green Realty Corp., which owns the asset, was represented in the transaction by Newmark’s debt and structured finance team.

The refinancing comes as capital markets for office assets remain uneven, with investor appetite largely concentrated in high-quality, well-leased properties in prime urban locations. The scale and pricing of the One Madison Avenue deal suggest that, despite broader headwinds in the office sector, lenders and institutional investors are still willing to deploy significant capital into top-tier assets with strong tenancy and long-term positioning.

Fully Leased, Fully Reimagined

Located in Manhattan, One Madison Avenue has undergone a major repositioning that combines a restored historic base with a newly constructed 550,000-square-foot tower. The building is fully leased to a mix of technology, financial services and artificial intelligence tenants, including IBM, Franklin Templeton, Palo Alto Networks, FanDuel, Sigma Computing and Harvey AI.

The property’s full occupancy and tenant mix reflect a broader shift in leasing demand toward modern, amenity-rich buildings capable of supporting hybrid work and attracting talent. Features such as full outside air systems, natural light and hospitality-oriented shared spaces have become increasingly central to new office developments competing for high-credit tenants.

According to Newmark Research, demand for premium office space continues to outpace supply in key gateway markets. Direct availability in Manhattan trophy assets fell to 3.7% by the end of 2025, highlighting a widening gap between top-performing buildings and the rest of the office market.

The One Madison Avenue refinancing underscores this bifurcation, with capital flowing toward a relatively narrow segment of high-performing assets even as older or less competitive office properties face rising vacancies and refinancing challenges.

The refinancing comes amid a broader wave of capital flows into high-quality office assets. In a comparable transaction last year, the 72-story tower at 70 Hudson Yards completed a $2.45 billion capital stack, with its final tranche of debt financing secured in January 2025.

FACTSHEET: One Madison Avenue Refinancing Arranged by Newmark Group, Inc.
Transaction Overview

Deal: $1.65 billion refinancing of One Madison Avenue, Manhattan
Replaces prior $1.25 billion construction facility
Largest U.S. office CMBS issuance in the past 12 months
Pricing: 181 bps spread over U.S. Treasury index; all-in rate of 5.81%

Newmark Team

Jordan Roeschlaub, Co-President, Debt & Structured Finance
Nick Scribani, Vice Chairman
Ricky Braha, Senior Managing Director
Represented owner: SL Green Realty Corp.

Asset Profile

Location: Adjacent to Madison Square Park, Midtown Manhattan
Structure: Restored historic podium + newly constructed 550,000 sq ft tower
Occupancy: 100% leased
Tenants: IBM, Franklin Templeton, Palo Alto Networks, FanDuel, Sigma Computing, Harvey AI — spanning technology, AI and financial services

Asset Features

100% outside air systems
Expansive natural light throughout
Hospitality-driven shared spaces
Curated retail offerings

Market Context (Newmark Research)

Tenant demand increasingly concentrated in top-tier, gateway market assets
Manhattan trophy office direct availability fell to just 3.7% by end of 2025
Institutional investors actively pursuing high-quality office with strong tenancy and long-term relevance

Project Team

Developer / Owner: SL Green Realty Corp.
Development Partner: Hines
Investment Partner: National Pension Service of Korea
Lead Architect: Kohn Pedersen Fox Associates
Interior Design / Workplace: Vocon
Amenity & Interior Design: Rockwell Group
General Contractor / Construction Manager: AECOM Tishman
Structural Engineer: Severud Associates
MEP Engineer: Jaros, Baum & Bolles
Civil Engineer: Langan Engineering
Sustainability Consultant: Vidaris
Vertical Transportation: Schindler Group
Acoustics Consultant: Cerami & Associates
Wind Engineering: RWDI