April 15, 2010 - SL Green Realty Corp. (NYSE: SLG) announced today that it has entered into an agreement to acquire 600 Lexington Avenue in New York City for $193.0 million, or approximately $636 per square foot, from a joint venture led by Hines US Core Office Fund.
In connection with the acquisition, SL Green will assume $49.85 million of in-place financing. The 5.74% interest-only loan matures in March 2014.
SL Green's Chief Executive Officer, Marc Holliday, commented, "Recent improvements in New York City office fundamentals, coupled with improvements in the credit markets, have resulted in the New York City real estate market beginning to open up after two years in which there has been a dearth of institutional quality offerings. We have worked hard to build our cash position in order to be able to take advantage of opportunities quickly as the market recovers. With that in mind, we moved aggressively to lock up this opportunity, and there exists a strong likelihood that we will be able to attract a joint venture partner on this asset."
Emery Roth and Sons designed the 303,515 square foot, 36-story office tower, which was constructed in 1985. The Class A, glass and steel structure, situated on the Northwest corner of Lexington Avenue and 52nd Street, boasts stunning views, a modern lobby, excellent access to transportation and recently remodeled elevators. The boutique nature of the building is exemplified by floorplates ranging from approximately 6,800 square feet to 11,700 square feet, which are highly coveted by smaller tenants seeking full floor identity. The building currently is 93.6% leased, predominantly to boutique full-floor office tenants.
Over the next three years, leases for approximately 54% of the property's rentable square footage expire, providing SL Green the opportunity to take advantage of what it believes is an improving market. SL Green intends to immediately employ a targeted leasing and marketing campaign to reposition and reintroduce the building in the marketplace.
The law firm of Greenberg Traurig, LLP represented SL Green. The seller was represented by CB Richard Ellis Group, Inc.
About SL Green Realty Corp.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche. As of December 31, 2009, the Company owned 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York's largest office landlord. In addition, at December 31, 2009, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 374,812 square feet, three development properties encompassing approximately 399,800 square feet and two land interests, along with ownership interests in 31 suburban assets totaling 6,804,700 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.
To be added to the Company's distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212-216-1601.
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Gregory F. Hughes
Chief Financial Officer
Director, Investor Relations