Newmark Group, Inc. arranged a $1.65 billion commercial mortgage‑backed securities (CMBS) refinancing for One Madison Avenue, a fully leased 550,000‑square‑foot tower in Manhattan. The transaction, the largest U.S. office CMBS issuance in the past 12 months, replaces a prior $1.25 billion construction facility and is expected to close in the first quarter of 2026.
The deal was priced at a spread of 181 basis points over the U.S. Treasury index, resulting in an all‑in rate of 5.81%. The refinancing was structured for owner SL Green Realty Corp. and was led by Newmark’s Co‑President of Debt & Structured Finance, Jordan Roeschlaub, Vice Chairman Nick Scribani, and Senior Managing Director Ricky Braha. A consortium of major banks—including Wells Fargo, Goldman Sachs, J.P. Morgan, Bank of America, Deutsche Bank, and Crédit Agricole—served as agents for the transaction.
One Madison Avenue is 100% leased to high‑profile tenants such as IBM, Franklin Templeton, Palo Alto Networks, FanDuel, Sigma Computing, and Harvey AI. The building’s adaptive‑reuse design combines a historic podium with a new tower, positioning it as a premium, amenity‑rich office space that meets the demands of hybrid work models in a gateway market.
The refinancing supports SL Green’s broader $7 billion financing plan for 2026, which aims to strengthen the balance sheet, extend debt maturities, and allow partners to extract approximately $308 million in equity. The transaction’s oversubscription and favorable pricing reflect continued investor appetite for prime, fully‑leased office assets amid a tight supply of trophy properties in Manhattan, where direct availability fell to 3.7% by the end of 2025.
"This transaction demonstrates the depth and precision of capital available for best‑in‑class office assets," said Jordan Roeschlaub. "Institutional investors continue to aggressively pursue high‑quality opportunities with strong tenancy, differentiated product and long‑term relevance. One Madison Avenue represents exactly that."
"Execution at this scale reflects both the strength of the sponsorship and the evolving credit profile of premier office assets," added Nick Scribani. "The strong investor demand for this transaction underscores the depth of liquidity available for high‑quality office assets, even amid periods of market volatility."
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