SL Green Realty Corp. Announces Refinancing of 1515 Broadway
January 25th, 2010 at 12:11 PMNew York, NY, January 5, 2010 - SL Green Realty Corp. (NYSE: SLG) today announced the closing of a $475 million refinancing of 1515 Broadway, one of the most visible landmark buildings in New York City's Times Square. The iconic tower, which serves as the global headquarters of Viacom International, Inc., is owned by SL Green in a joint venture with SITQ.
The new five-year, floating rate mortgage was provided by a syndicate led by The Bank of China that included DekaBank and Landesbank Baden-Wurttemberg (LBBW). In connection with the refinancing the joint venture de-levered the asset, replacing the former $625 million mortgage that was due to mature in November 2010 with longer-term financing.
Acquired by the SL Green/SITQ joint venture in 2002, 1515 Broadway was one of the skyscrapers that pioneered the transformation of Times Square, making the area a prominent office submarket in Midtown Manhattan. The joint venture, through SL Green, embarked upon a $40 million capital program at 1515 Broadway in 2008 which included a completely redesigned lobby, new elevator cabs and other building improvements which will substantially upgrade the building. This project is anticipated to be completed in the first quarter of 2010. In addition to being anchored by Viacom, which signed a 1.3 million square foot lease renewal in late 2008, the tower is home to The Minskoff Theatre and AEG Live's Nokia Theatre.
SL Green President Andrew Mathias commented, "At a time when many commercial property owners have faced difficulties in financing and refinancing their assets, we continue to access our relationship base to source value-add financings."
Mr. Mathias continued, "Despite the many difficulties the Manhattan office market has experienced throughout the recent downturn, SL Green has actually strengthened its standing as New York City's leading landlord and has repeatedly demonstrated the value of its highly attractive, well-leased and well-occupied portfolio by refinancing several of its assets, including 100 Park Avenue, 420 Lexington Avenue, 625 Madison Avenue, 1551-1555 Broadway and now 1515 Broadway. Furthermore, as we indicated at our recent investor conference, we were able to source this financing which required a lower equity contribution than previously forecast."
Rob Martin of CB Richard Ellis and Deutsche Bank's Commercial Real Estate Restructuring Advisory practice acted as advisors for SL Green for the transaction.
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 September 30, 2009, the Company owned interests in 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York's largest office landlord. In addition, at September 30, 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.
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