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