SL Green Completes $225 Million Facelift at 245 Park Avenue, Reaching Full Occupancy

SL Green Realty Corp. has completed a $225 million repositioning of its 245 Park Avenue tower, a 44-story, 1.8 million-square-foot property in Midtown Manhattan. The building reached 100% occupancy in September, according to SL Green CEO Marc Holliday.

Renovation Highlights

The extensive renovation, dubbed a "seismic" overhaul by Holliday, includes a new wraparound public plaza, a redesigned Park Avenue podium facade by architects KPF, and enhanced tenant amenities. The project is slated for final completion in March 2027.

"It’s a quintessential SL Green case study," Holliday stated. "It was a comprehensive re-do from the plaza to the roof. We breathe new life into older buildings and bring them up to world-class standards."

SL Green partnered with Mori Trust on the renovation. Holliday credited the joint venture partner and KPF for collaborating on the vision to make 245 Park Avenue competitive in the Manhattan market. The Department of City Planning also provided cooperation for the plaza redesign.

Financials and Leasing

When SL Green took full control of the property in 2022 following a bankruptcy by the previous owner, rents were approximately $85 per square foot. Following the renovation and rebranding, recent rental "asks" have reached as high as $185 per square foot.

A lease for 36,563 square feet with Nearwater Management was instrumental in achieving full occupancy. Other tenants secured for the building include Area Management, Carlyle Investment Management, EQT Partners, and Houlihan Lokey.

SL Green initially became involved with 245 Park Avenue as a lender in 2018. At the time of its takeover in 2022, the building was about 80% occupied, but many leases were nearing expiration. "We had to re-establish good tenant relationships" after the disruption caused by the bankruptcy, Holliday explained.

Financing and Future Additions

Recently, SL Green secured a $2 billion refinancing for the property. "We’re thrilled at the support we got from the debt community, it’s very satisfying," Holliday commented on the new loan, which was led by JP Morgan Chase and involved six other banks. This new financing replaced a $1.2 billion mortgage and a $568 million mezzanine loan.

The building will also soon feature a restaurant operated by John Meadow's LDV Hospitality. The restaurant will occupy a 10,000-square-foot ground-level space on the north end of the Park Avenue side. "The space was vacant for many years. We don’t know why," Holliday said. "We chose LVD because they’re great operators." The specific concept for the restaurant has not yet been determined.