BXP has secured a construction loan of $1.2bn for a new development, 343 Madison Avenue, in Midtown Manhattan, New York City, US, marking a key step in a $2bn project.
This 46-storey 343 Madison Avenue tower, with around 930,000ft² of space, will provide direct access to Grand Central Terminal’s Madison Concourse.
The loan comes with a four-year initial term and a one-year extension option. The initial interest rate is set at Term SOFR plus 2.50%, potentially reducing to 2.25% upon reaching leasing and construction targets. 343 Madison Avenue is scheduled for completion in late 2029.
BXP executive vice-president and chief financial officer Mike LaBelle 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.”
The financing was arranged by Wells Fargo Bank as administrative agent, with BofA Securities, The Bank of New York Mellon, and JPMorgan Chase as joint lead arrangers. Several other financial institutions participated as documentation and sustainability agents.
Approximately 50% of the building’s space is already pre-leased, with ongoing discussions for additional commitments, highlighting strong leasing activity.
Designed by Kohn Pedersen Fox, the tower will feature a range of amenities, including a hospitality-forward programme, dining spaces, a club on the top floors with spaces to dine, connect and collaborate, and a food and beverage offering.
The workplace tower, 343 Madison Avenue, aims for environmental certifications, such as LEED Platinum and WiredScore Platinum, among others.
Sustainability features of the development include a completely electric design with zero on-site combustion as well as a direct outside air system.
In August 2025, Turner Construction Company was selected to build the tower.
Fried Frank provided legal services for BXP and Riemer Braunstein for Wells Fargo.
