SL Green Announces Financing/Refinancings of Three Portfolio Assets


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

property owner, today announced it has closed on the refinancings of 800

Third Avenue and Jericho Plaza and the construction financing for 719

Seventh Avenue.



SL Green, along with its joint venture partners, successfully closed

on the refinancing of 800 Third Avenue. The new 10-year, $177

million mortgage loan features a fixed interest rate of 3.17%,

subject to up to a 20 basis point increase under certain conditions,

and replaces the previous $20.9 million mortgage that was set to

mature in August, 2017. SL Green, which owns a 60.5% interest in the

asset, received approximately $89 million in net proceeds from the



Located in the Grand Central submarket, 800 Third Avenue is a

565,000 square foot, 40-story, Class A office building that is

currently 96% occupied.



SL Green, along with its joint venture partners, completed the

recapitalization of Jericho Plaza by securing a new 2-year (subject

to three 1-year extension options) floating rate mortgage with an

interest rate of 4.15% over LIBOR. The initial funding was

approximately $75 million with a total expected funding of $100

million. The refinancing closed simultaneously with a series of

transactions culminating in the property being owned in a new

venture that continues to include SL Green and Onyx Equities, along

with other partners. The venture will implement a capital

improvement plan that includes lobby and elevator cab renovations,

addition of a conference facility, and landscaping upgrades. SL

Green, which owns an 11.67% non-controlling interest in the venture,

received approximately $8.4 million in net proceeds from the

refinancing and will continue to share management/leasing

responsibilities with Onyx Equities.


Located immediately off the Long Island Expressway, the two-property

complex totals 662,000 rentable square feet, on nearly 49 acres of

land. The amenity-rich property features a full service health club

with locker rooms and fitness classes, abundant surface parking, and

multiple dining options.



SL Green has secured construction financing of a retail development

site at 719 Seventh Avenue. The 2-year (subject to one 1-year

extension option) $44 million loan features a floating interest rate

of 3.05% over LIBOR, with the ability to reduce the spread to 2.55%

upon achieving certain hurdles. SL Green, which owns a 75% interest

in the asset, received approximately $21 million in net proceeds at

the closing of the transaction, with the balance of the loan

proceeds being used to complete the construction.


Located in Times Square, 719 Seventh Avenue will become a prime

retail flagship location featuring approximately 10,000 square-feet

and an extensive LED signage program. Construction completion is

estimated to occur prior to the 2016 holiday season.

SL Green President, Andrew Mathias, commented, “The successful

completion of these transactions provides evidence that liquidity

continues to be available for high-quality borrowers. The refinancings

of 800 Third and Jericho represent another stride in our effort to

extend the term of secured debt maturities, reduce cost and generate

incremental proceeds, while the construction financing secured at 719

Seventh speaks to SL Green’s ability to recognize value and lock in low

borrowing rates for a property set to benefit from its prime retail


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 December 31, 2015, SL

Green held interests in 121 Manhattan buildings totaling 48.3 million

square feet. This included ownership interests in 30.5 million square

feet of commercial buildings and debt and preferred equity investments

secured by 17.8 million square feet of buildings. In addition to

its Manhattan investments, SL Green held ownership interests in 33

suburban buildings totaling 5.1 million square feet in Brooklyn, Long

Island, Westchester County, Connecticut and New Jersey.


Matt DiLiberto
Chief Financial Officer
SL Green Realty Corp.


Source: SL Green Realty Corp

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