BXP, Inc. (NYSE: BXP) has closed a $1.2 billion construction loan for its 343 Madison Avenue development in Midtown Manhattan, the company announced in a press release.

The loan supports a $2 billion project that will produce a 46-story, approximately 930,000-square-foot office tower with direct access to Grand Central Terminal's Madison Concourse. BXP expects to deliver the building in late 2029. The project is approximately 50% pre-leased, according to the company.

The construction loan carries a four-year initial term with a one-year extension option. The initial interest rate is set at Term SOFR plus 2.50%, which can be reduced to Term SOFR plus 2.25% upon the achievement of specified leasing and construction milestones.

Wells Fargo Bank, N.A. served as administrative agent on the financing. BofA Securities, Inc., The Bank of New York Mellon Corporation, and JPMorgan Chase Bank, N.A. acted as joint lead arrangers. Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Landesbank Baden-Wurttemberg, PNC Bank, National Association, and U.S. Bank N.A. participated as documentation agents.

Designed by Kohn Pedersen Fox, the tower targets several sustainability certifications, including LEED Platinum and WiredScore Platinum. The building features a fully electric design with zero on-site combustion.

"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," said Mike LaBelle, Executive Vice President and Chief Financial Officer at BXP.

BXP is organized as a real estate investment trust and, as of June 30, 2026, managed a portfolio totaling 51.1 million square feet across 164 properties.