Recently completing a $2 billion refinancing, SL Green’s 1.8 million square-foot 245 Park Avenue achieved full occupancy in September, which is just one part of its evolving narrative.
The 44-story building, located on the block between East 46th and East 47th, is nearing completion of a significant $225 million repositioning effort. This project includes a revamped public plaza, a striking new facade designed by KPF, enhanced tenant amenities, and an upcoming restaurant from John Meadow’s LDV Hospitality.
“It’s a quintessential SLG Green case study,” Holliday mentioned. “The overhaul spans from the plaza to the roof. We’re revitalizing older structures to align with world-class standards.” The renovations are set to be finished by March.
Holliday expressed appreciation for the collaboration with joint-venture partner Mori Trust and architects KPF, who helped realize the vision for 245 Park Avenue and its competitive position in the booming Park Avenue market. He also thanked the Department of City Planning for its support during the redesign of the plaza.
When SL Green took full control of 245 Park in 2022, rents were around $85 per square foot, following a “contentious bankruptcy” involving the previous owner. More recent rental inquiries have reached up to $185 per square foot. A notable lease has been signed by Nearwater Management for 36,563 square feet.
SL Green initially became involved with the property as a lender back in 2018. At the time of takeover four years later, the building was technically about 80% occupied, though that figure was somewhat misleading due to several expiring leases. “We needed to rebuild strong relationships with tenants following the disruption caused by the bankruptcy,” Holliday said. Since then, firms like Area Management, Carlyle Investment Management, EQT Partners, and Houlihan Lokey have moved in.
Regarding the refinancing, Holliday remarked, “We’re really pleased with the support from the debt community; it’s quite gratifying.” The new financing, led by JP Morgan Chase along with six other banks, replaces a former $1.2 billion mortgage and a $568 million mezzanine loan.
In addition to the renovations, a restaurant from John Meadow’s LVD Hospitality is anticipated to occupy a 10,000 square-foot space at the north end of Park Avenue. “The location had been vacant for years; it’s hard to say why,” Holliday noted. “We selected LVD because they’re excellent operators.” While Meadow is recognized for his successful Scarpetta restaurants, a specific concept for the venue at 245 Park has yet to be determined.
