BXP Inc. (NYSE: BXP), the largest publicly traded developer, owner and manager of premier workplaces in the United States, announced July 28, 2026 that it has closed a $1.2 billion construction loan for 343 Madison Avenue, a 46-story office tower it is developing in Midtown Manhattan with direct access to Grand Central Terminal, according to the company’s press release.
The tower will total approximately 930,000 square feet and is designed by architecture firm Kohn Pedersen Fox as an all-electric building targeting LEED Platinum certification, part of a broader trend of major developers building out fully electrified trophy office towers to meet corporate tenants’ sustainability commitments and New York City’s building-emissions rules.
Loan terms and project economics
The construction loan carries a four-year initial term with a one-year extension option. Pricing starts at Term SOFR plus 2.50%, with a built-in step-down to Term SOFR plus 2.25% once the project hits specified leasing and construction milestones — a structure that rewards BXP for leasing up and building on schedule with a lower borrowing cost. The tower represents roughly $2 billion in total project cost, meaning the construction loan covers the majority of the development’s expense.
343 Madison Avenue is already about 50% pre-leased, a substantial leasing commitment for a Manhattan office tower that will not deliver until late 2029, reflecting continued corporate tenant demand for new, amenity-rich, energy-efficient towers in the tightest submarkets even as older Manhattan office stock continues to struggle with elevated vacancy. Vertical construction on the project began in mid-2025.
The loan closing came the same day BXP reported its second-quarter 2026 earnings, capping a busy news day for the REIT.
What it means
Verified facts: BXP closed a $1.2 billion construction loan for the 930,000-square-foot 343 Madison Avenue tower near Grand Central, which is roughly half pre-leased and targeting a late-2029 delivery as part of a $2 billion total project.
RealtyWire analysis: The financing underscores how bifurcated Manhattan’s office market has become — capital continues to flow readily into new, trophy-quality, transit-adjacent, fully electrified towers with strong pre-leasing, even as the broader office sector continues to grapple with elevated vacancy in older buildings. Lenders’ willingness to provide $1.2 billion for a project not delivering until 2029 signals confidence that top-tier Manhattan office space near major transit hubs will remain in demand well into the next decade.
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