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FinanceBXP secures $1.2bn construction loan for 343 Madison Avenue in Midtown Manhattan
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BXP has secured a $1.2 billion construction loan for its 343 Madison Avenue development in Midtown Manhattan, a key step in the $2 billion project. The 46-story tower, with approximately 930,000 square feet of space, will provide direct access to Grand Central Terminal's Madison Concourse. The loan has a four-year initial term with a one-year extension option, and an initial interest rate of Term SOFR plus 2.50%, potentially reducing to 2.25% upon meeting leasing and construction targets. The project is scheduled for completion in late 2029. Wells Fargo Bank acted as administrative agent, with BofA Securities, The Bank of New York Mellon, and JPMorgan Chase as joint lead arrangers. About 50% of the space is already pre-leased. Designed by Kohn Pedersen Fox, the tower aims for LEED Platinum and WiredScore Platinum certifications and will feature a fully electric design with zero on-site combustion.
Source report
The 46-storey tower will provide direct access to Grand Central Terminal’s Madison Concourse. Credit: BXP and Kohn Pedersen Fox/Turner Construction Company
By Srivani Venna Wed, July 29, 2026 at 3:00 AM PDT | 2 min read
BXP has secured a $1.2bn construction loan for its new development at 343 Madison Avenue in Midtown Manhattan, New York City, marking a significant milestone in the $2bn project.
Project Overview
- Height: 46 storeys
- Total space: Approximately 930,000 ft²
- Access: Direct connection to Grand Central Terminal's Madison Concourse
- Completion: Scheduled for late 2029
Loan Details
- Initial term: Four years, with a one-year extension option
- Interest rate: Term SOFR plus 2.50%, potentially reducing to 2.25% upon meeting leasing and construction targets
Financing Partners
The loan was arranged by Wells Fargo Bank as administrative agent, with BofA Securities, The Bank of New York Mellon, and JPMorgan Chase serving as joint lead arrangers. Additional financial institutions participated as documentation and sustainability agents.
Statement from BXP
Mike LaBelle, Executive Vice President and Chief Financial Officer of BXP, said:
"We are pleased to complete this financing, which reflects the quality of 343 Madison Avenue, continued confidence in BXP's development platform, and our ability to secure attractive financing terms in today's market. This transaction advances one of our most compelling value-creation opportunities, strengthens our financial flexibility, and supports our strategy to deliver long-term value for our shareholders."
Leasing and Design
- Approximately 50% of the building's space is already pre-leased, with ongoing discussions for additional commitments
- Designed by Kohn Pedersen Fox
- Amenities include a hospitality-forward programme, dining spaces, a top-floor club for dining and collaboration, and food and beverage offerings
Sustainability Features
The tower is targeting the following certifications:
- LEED Platinum
- WiredScore Platinum
Key sustainability elements include a completely electric design with zero on-site combustion and a direct outside air system.
Construction and Legal
In August 2025, Turner Construction Company was selected to build the tower. Fried Frank provided legal services for BXP, and Riemer Braunstein represented Wells Fargo.
This article was originally created and published by World Construction Network, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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BXP closes $1.2bn loan for 343 Madison Avenue, New York City