SL Green Realty Corp. (NYSE:SLG), today announced three separate
agreements to sell its Manhattan assets located at 2 Herald Square, 180
Broadway, and 985-987 Third Avenue which will generate net cash proceeds
to the Company of $240 million.
The Company will sell the leased fee interest in 2 Herald Square for
$365.0 million. The sale of the leased fee interest, which is improved
with an existing 11-story 365,000 square foot commercial office
building, is expected to close during the fourth quarter of 2014.
SL Green, with its partner Jeff Sutton, have reached an agreement to
sell all their interests, including their fee position and retail
condominium unit, in a mixed-use college dormitory/retail asset at 180
Broadway for $222.5 million. This transaction is expected to close
during the third quarter of 2014.
Also, today SL Green closed on the sale of its development properties at
985–987 Third Avenue for $68.7 million. The sale was made in conjunction
with the sale of an adjacent parcel, which the Company did not own. The
total amount paid for the combined development site, plus development
rights, was $100.0 million.
Andrew Mathias, President of SL Green, stated, “While the strategic
approach for each of these investments varied, we had one goal in mind:
creating shareholder value. I am very pleased to say that with each of
these transactions, we’ve successfully demonstrated our ability to
identify, create, and harvest significant value. Our combined IRR across
these three deals is in excess of 21%.”
SL Green acquired the leased fee interest in 2 Herald Square in a joint
venture partnership in 2007 and fully consolidated its position in 2010.
Steven Kohn of Cushman & Wakefield represented SL Green in this
transaction.
180 Broadway is a 24-story mixed-use property situated in the heart of
downtown Manhattan adjacent to the Fulton Street transit hub. SL Green
and its partner developed 180 Broadway from the ground up for Pace
University. The property features three floors of retail space, leased
to Urban Outfitters and TD Bank, as well as Pace’s ground lease
condominium unit containing dormitory rooms serving the needs of up to
608 Pace University students. Adam Spies of Eastdil Secured acted on
behalf of SL Green in this transaction.
In December 2012, SL Green acquired 985-987 Third Avenue, located on
Third Avenue between 58th and 59th Streets on Manhattan’s Upper East
Side. After subsequently acquiring development rights from neighboring
properties in separate transactions in 2013 and 2014, the Company then
joined with the neighboring owner to market the combined properties in
creating a compelling retail/residential development opportunity. Robert
Knakal of Massey Knakal acted on behalf of the sellers.
About SL Green Realty Corp.
SL Green Realty Corp., New York City's largest office landlord, is a
fully integrated real estate investment trust, or REIT, that is focused
primarily on acquiring, managing and maximizing value of Manhattan
commercial properties. As of March 31, 2014, SL Green held interests in
95 Manhattan buildings totaling 45.1 million square feet. This included
ownership interests in 28.4 million square feet of commercial buildings
and debt and preferred equity investments secured by 16.7 million square
feet of buildings. In addition to its Manhattan investments, SL Green
held ownership interests in 35 suburban buildings totaling 5.9 million
square feet in Brooklyn, Long Island, Westchester County, Connecticut
and New Jersey.
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Copyright Business Wire 2014