BXP Lands $1.2B for Manhattan High-Rise

BXP has secured a $1.2 billion construction loan for 343 Madison Ave., a 46-story commercial development in Midtown Manhattan. The note has a four-year initial term, plus a one-year extension option, and bears an initial interest rate of 2.5 percent. The financing completes the capitalization of the $2 billion project.

A lending syndicate led by Wells Fargo issued the note, together with BofA Securities, The Bank of New York Mellon and JPMorgan Chase Bank. Fried Frank served as legal counsel for BXP, while Riemer Braunstein LLP worked on behalf of Wells Fargo.

BXP made its plans known for the 930,000-square-foot project in November 2024 and broke ground in July 2025. Since construction began, the ownership managed to secure two lease deals with real estate investment firm Starr—one in May 2025 for 49,000 square feet and a second one in January 2026 for 275,000 square feet for 20 years. The larger tenant will occupy a total of eleven floors at the future high-rise.

Additionally, law firm McDermott Will & Schulte inked last month a 150,000-square-foot deal at 343 Madison Ave., for floors 31st through 37th, with move-in slated for October 2029. The development is already 50 percent pre-leased.

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Designed by Kohn Pedersen Fox, 343 Madison Ave. will rise across the street from Grand Central Station. Upon completion, the high-rise will feature a lobby café, bicycle storage with cabanas, private terraces and a fully electric design with zero on-site combustion—in pursuit of a LEED Platinum certification, among others.

Manhattan office pipeline puts on a Class A show

As of April, Manhattan’s office pipeline stood among the largest in the U.S., with 3.3 million square feet of space across nine projects waiting to be delivered. The figure accounted for 0.7 percent of existing inventory, second only to Boston’s 5.1 million square feet of space under construction.

Other trophy Class A office projects under construction across the borough include 70 Hudson Yards, a 1.4 million-square-foot future tower that marks the largest ground-up U.S. office development since the pandemic. Owners Related Cos. and Oxford Properties Group expect move-ins at the high-rise in 2028.