SL Green and BlackRock Real Assets Form Joint Venture for Ownership of Manhattan Residential Property


SL Green Realty Corp. (NYSE:SLG), New York City’s largest commercial

property owner, and BlackRock Real Assets, the real assets arm of

BlackRock, Inc. (NYSE:BLK), a global leader in investment management,

today announced the formation of a joint venture for the ownership of

400 East 57th Street, a rental apartment property located in

Manhattan. The transaction constitutes a sale by SL Green of a 49%

ownership interest in the entity to an investment account managed by

BlackRock at a gross asset valuation of $170 million.

In conjunction with the recapitalization of the property, New York

Community Bank provided a 10-year $100 million mortgage loan at a 3%

fixed interest rate.

“BlackRock continues to target high-quality assets in major markets as a

means of seeking to deliver attractive risk-adjusted returns to our

clients. The 400 East 57th Street investment fits very

favorably within our investment strategy given its gateway market

location, current income, and the potential for future value creation.

We are excited about the opportunity to partner with SL Green. The

partnership expects to continue to add value through a unit upgrade

program and enhancement to the common areas and amenities,” said

Benjamin Young, Managing Director and Head of US Real Estate Separate

Accounts at BlackRock Real Assets.

“Investor demand for high-quality, well-located rental apartments in

Manhattan continues to be robust,” commented SL Green co-Chief

Investment Officer, David Schonbraun. “We are delighted to have

BlackRock as a partner in the asset. Along with our current partner,

Stonehenge Partners, we have been able to create value through

renovating and repositioning the property. This transaction allows us to

capitalize on some of the value created, while maintaining future upside

through our remaining equity stake.”

400 East 57th Street is located on First Avenue and

encompasses the entire east side of the block between 56th

and 57th streets, featuring 261 luxury apartment units and

13,772 square feet of ground floor retail.

Andrew Scandalios and Rob Hinckley of HFF represented SL Green on the


About SL Green Realty Corp.

SL Green Realty Corp., an S&P 500 company and 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 June 30, 2016, the

Company held interests in 119 Manhattan buildings totaling 44.7 million

square feet. This included ownership interests in 28.0 million square

feet of commercial buildings and debt and preferred equity investments

secured by 16.7 million square feet of buildings.

In addition, the Company held ownership interests in 31 suburban

buildings totaling 4.9 million square feet in Brooklyn, Long Island,

Westchester County, Connecticut and New Jersey.

About BlackRock

BlackRock is a global leader in investment management, risk management

and advisory services for institutional and retail clients. At September

30, 2016, BlackRock’s AUM was $5.1 trillion. BlackRock helps clients

around the world meet their goals and overcome challenges with a range

of products that include separate accounts, mutual funds, iShares®

(exchange-traded funds), and other pooled investment vehicles. BlackRock

also offers risk management, advisory and enterprise investment system

services to a broad base of institutional investors through BlackRock

Solutions®. As of September 30, 2016, the firm had approximately 13,000

employees in 30 countries and a major presence in global markets,

including North and South America, Europe, Asia, Australia and the

Middle East and Africa. For additional information, please visit the

Company’s website at

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About BlackRock Real Assets

BlackRock, the largest investment manager in the world, sits at the

intersection of global capital and Real Asset investing opportunities.

With deep industry expertise, demonstrated access to proprietary deals

and a purely fiduciary mindset, its experienced investment professionals

leverage BlackRock’s risk management capabilities, global reach and deep

local presence to deliver compelling investment opportunities to meet

clients’ needs. BlackRock provides investors with Private Real Estate

Debt & Equity, Real Estate Securities and Infrastructure Debt & Equity

via funds, co-investments and managed accounts, and currently has over

$30 billion in invested and committed Real Estate and Infrastructure

assets and capital as of September 30, 2016. Its approximately

300-person team is based in 22 offices globally.

Forward-looking Statements

This press release includes certain statements that may be deemed to be

“forward-looking statements” within the meaning of the Private

Securities Litigation Reform Act of 1995 and are intended to be covered

by the safe harbor provisions thereof. All statements, other than

statements of historical facts, included in this press release that

address activities, events or developments that we expect, believe or

anticipate will or may occur in the future, are forward-looking

statements. Forward-looking statements are not guarantees of future

performance and we caution you not to place undue reliance on such

statements. Forward-looking statements are generally identifiable by the

use of the words “may,” “will,” “should,” “expect,” “anticipate,”

“estimate,” “believe,” “intend,” “project,” “continue,” or the negative

of these words, or other similar words or terms. Forward-looking

statements contained in this press release are subject to a number of

risks and uncertainties, many of which are beyond our control, that may

cause our actual results, performance or achievements to be materially

different from future results, performance or achievements expressed or

implied by forward-looking statements made by us. Factors and risks to

our business that could cause actual results to differ from those

contained in the forward-looking statements are described in our filings

with the Securities and Exchange Commission. We undertake no obligation

to publicly update or revise any forward-looking statements, whether as

a result of future events, new information or otherwise.


David Schonbraun
Co-Chief Investment Officer

Chief Financial Officer

Source: SL Green Realty Corp.

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