BXP, the largest Class A office owner in the country, has secured a $1.2 billion construction loan to build its 930,000-square-foot office tower development at 343 Madison Avenue in Midtown.
The loan, which has a four-year initial term and a one-year extension option, was provided by Wells Fargo, Bank of America Securities, Bank of New York Mellon, and J.P. Morgan Chase.
Once construction is completed, the $2 billion project at 343 Madison Avenue will feature offices, dining spaces, terraces, and plenty of amenities.
The anticipated tower, located just west of Grand Central Terminal, is already 50 percent pre-leased, with C.V. Starr signing a 275,000-square-foot deal in October and McDermott Will & Schulte taking roughly 150,000 square feet in April.
C.V. Starr later expanded its initial lease by another two full floors.
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BXP executives said during the earnings call that the firm is in negotiations with two more prospective tenants, which would bring the building to nearly 70 percent pre-leased.
CEO Owen Thomas said the REIT will lease the rest of the floors closer to delivery to secure “market-leading rents.”
Hilary Spann, executive vice president of BXP’s New York region, noted that the pricing power in Manhattan remains favorable to landlords, with rents consistently 10 to 15 percent above last year’s levels.
BXP reported approximately 1.8 million square feet of leasing across 106 transactions during the second quarter of 2026, representing roughly 129 percent of the firm’s 10-year average for second-quarter leasing.
The success was largely driven by McDermott’s lease at 343 Madison Avenue and a deal with Boston Trends at its Reservoir Place office building in Waltham, Mass.
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BXP reported funds from operations (FFO) of $283.4 million, or $1.78 per diluted share, for the second quarter, compared to $271.1 million, or $1.71 per share, during the same period last year.
The REIT’s revenue increased 3.1 percent to $895.7 million during the second quarter compared to $868.5 million during the second quarter of 2025.
Net income, however, decreased to $68.6 million for the second quarter, attributed to the anticipated disposition of Sumner Square, its multi-building office and retail complex in Washington, D.C.
BXP currently has six assets under contract for sale for total net proceeds of $240 million, including two office buildings in D.C.
It demonstrates the company’s strength in the market that they were able to secure a large construction loan and attract prominent tenants to its 343 Madison Avenue development.
