245 Park Ave Will Close $2 Billion Loan
The commercial office tower near Grand Central will use the funds for site improvements and to refinance debt.
Updated on Oct. 7, 2026 in Commercial
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SL Green Realty and Mori Trust Holdings are set to finalize a $2 billion mortgage for the 44-story office building at 245 Park Ave in New York City on October 20, 2026. This financial move will retire $1.7 billion in existing debt while funding major property updates.
Why it matters
Securing this capital allows the owners to address $226.6 million in landlord obligations and $81.3 million in tenant improvements to maintain the building's standing. The investment follows the tower receiving LEED Gold certification earlier in 2026, ensuring the fully leased property remains competitive in the local office market.
The $2 billion loan includes $31.6 million in cash equity to support a $169.9 million total redevelopment plan. This is part of a strategy to manage the 1.8-million-square-foot tower after Rabobank’s lease expired in September 2026.
The players
SL Green Realty
A major New York City commercial property owner and developer known for managing large-scale office assets.
Mori Trust Holdings
A Japanese real estate investment firm that holds a significant stake in international commercial properties.
The details
The loan will be co-originated by a group of seven major financial institutions, including JPMorgan Chase and Citi Real Estate Funding Inc. Servicing duties are assigned to Trimont and Situs Holdings. The funding covers $119.1 million in rent concessions and $26.2 million specifically for redevelopment work to modernize the 44-story asset.
Timeline
2018: SL Green Realty initially acquired the office tower.
2023: Mori Trust purchased a 49.9 percent stake in the property.
September 2026: The lease previously held by Rabobank expired.
October 20, 2026: The loan transaction is scheduled to close.
The Home Front
This transaction reflects a broader trend of large-scale capital infusion into prime Manhattan office assets to meet updated sustainability and tenant expectations. It signals a shift toward reinvesting in existing high-profile towers to maintain market occupancy levels.
While this is a commercial transaction, residents in the Midtown area should monitor the surrounding streets for construction activity as redevelopment work commences. Keep an eye on local property listing updates or public filings if you are tracking the long-term vitality of the Grand Central district.
The takeaway
Large commercial refinancing deals are essential for funding the significant tenant and redevelopment improvements required to keep major city landmarks competitive. Homeowners and renters nearby should anticipate ongoing maintenance and upgrades as the building prepares for its next leasing cycle.
Further reading
Learn more about the latest shifts in Commercial real estate developments.
Source note: This article includes information reported by Commercial Property Executive.
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