BXP has closed a $1.2 billion construction loan for the development of 343 Madison Ave., a planned 46-story, approximately 930,000-square-foot office tower in Midtown Manhattan with direct access to Grand Central Terminal’s Madison Concourse. The financing represents a significant milestone in the capitalization of the $2 billion project and supports the ongoing construction.
The construction loan facility has a four-year initial term, plus a one-year extension option subject to customary conditions, and was completed on highly competitive terms, including an initial interest rate of Term SOFR plus 2.50 percent, which will be reduced to Term SOFR plus 2.25 percent upon the achievement of certain leasing and construction milestones.
BXP expects to deliver the project in late 2029, and it is positioned to be one of the few newly delivered office towers in Midtown Manhattan over the next several years. Approximately 50 percent of the building is pre-leased.
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