SL Green and Mori Trust Will Secure $2 Billion Loan

The partners will finalize a five-year mortgage for 245 Park Avenue in New York City on October 20, 2026.

Updated on Oct. 7, 2026 in Commercial

Modern skyscraper architecture in Manhattan, focusing on the angled steel and glass facade of a major office tower. — SL Green Realty and Mori Trust Holdings are set to finalize a $2 billion mortgage for the 245 Park Avenue office building in New York City on October 20, 2026. AI Illustration. Upload story photo >

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SL Green Realty and Mori Trust Holdings are set to close a $2 billion fixed-rate mortgage for the 245 Park Avenue office tower on October 20, 2026. The new financing will be used to retire $1.7 billion in previous debt and fund ongoing building obligations.

Why it matters

This financing supports the long-term operational costs and redevelopment of the fully leased asset. It ensures the property maintains its current status while meeting significant landlord obligations and tenant improvement requirements.

The 44-story, 1.8-million-square-foot office tower at 245 Park Ave is fully leased and carries a valuation of $2.7 billion. The transaction includes $31.6 million in cash equity alongside the $2 billion loan.

The players

SL Green Realty

This real estate investment trust is one of the largest office landlords in New York City.

Mori Trust Holdings

This major Japanese real estate developer maintains a 49.9 percent stake in the property.

JPMorgan Chase Bank

This global financial institution is acting as a co-originator for the mortgage loan.

Goldman Sachs Bank USA

This multinational investment bank is participating as one of the loan co-originators.

The details

Seven major financial institutions, including JPMorgan Chase Bank and Goldman Sachs Bank USA, will co-originate the loan. The proceeds are allocated to cover $226.6 million in landlord obligations, $119.1 million for rent concessions, $81.3 million for tenant improvements, and $26.2 million for redevelopment.

SL Green acquired the building in 2018.
Mori Trust purchased a 49.9 percent stake in 2023.
The loan transaction is scheduled to close on October 20, 2026.

Roadmap

This deal underscores the ongoing institutional preference for high-quality, fully leased assets in prime New York City corridors like Grand Central Terminal. It reflects a broader industry trend where landlords leverage debt to maintain competitiveness and fund major building improvements.

The commitment to fund $26.2 million in redevelopment costs signals continued capital investment into the 245 Park Avenue property, which is located in the high-traffic Grand Central Terminal district. These upgrades help ensure the building remains a stable, modernized anchor for its high-profile tenants.

The takeaway

This transaction provides the financial stability needed to support large-scale office operations in one of the city's most prominent corridors. For investors, it highlights the importance of liquidity management and strategic debt retirement in maintaining asset valuations.