BXP Secures $1.2 Billion Loan to Develop 343 Madison Avenue in NYC
Boston Properties (BXP) has secured a $1.2 billion construction loan for its new development at 343 Madison Avenue, located in Midtown Manhattan. The project is part of a larger $2 billion initiative and features a 46-story tower with approximately 930,000 square feet of space that will offer direct access to Grand Central Terminal’s Madison Concourse. The loan has an initial four-year term with the option for a one-year extension. The interest rate is set at Term SOFR plus 2.50%, which could decrease to 2.25% if leasing and construction milestones are met. BXP's CFO, Mike LaBelle, emphasized that this financing reflects confidence in their development platform and supports long-term value creation for shareholders. The project has already secured pre-leasing commitments for about half of its space, with ongoing discussions to fill more areas. The tower is scheduled for completion by late 2029 and will include sustainability features such as a fully electric design and environmental certifications like LEED Platinum.
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