BXP Closes $1.2B Construction Loan for Madison Avenue Office Tower

BXP, Inc. 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 Boston-based REIT expects to complete the $2-billion project, currently about 50% pre-leased, in 2029.

The construction loan facility has a four-year initial term, plus a one-year extension option subject to customary conditions. It was completed on highly competitive terms, including an initial interest rate of Term SOFR plus 2.50%, which will be reduced to Term SOFR plus 2.25% subject to certain leasing and construction milestones.

“We are pleased to complete this financing, which reflects the quality of 343 Madison Ave., continued confidence in BXP’s development platform, and our ability to secure attractive financing terms in today’s market,” said Mike LaBelle, EVP, CFO, BXP.

The financing was led by Wells Fargo Bank as administrative agent; BofA Securities, The Bank of New York Mellon Corporation and JPMorgan Chase Bank as joint lead arrangers; Banco Bilbao Vizcaya Argentaria, Landesbank Baden-Wurttemberg, PNC Bank and U.S. Bank as documentation agents; and BBVA as sustainability agent. Legal counsel was provided by Fried Frank for BXP and Riemer Braunstein for Wells Fargo.