SL Green Announces Sale of Tower 45 and Joint Venture of SoHo Property

Strategic Transactions Moving Forward in a Strong Market


SL Green Realty Corp. (NYSE:SLG), an S&P 500 company and New York City’s

largest commercial property owner, today announced two transactions with

an aggregate value of $642.8 million:

1) An agreement to sell Tower 45, the office building located at 120

West 45th Street, for $365.0 million, or approximately $830

per square foot; and

2) The formation of a joint venture with Invesco Real Estate (“Invesco”)

for the ownership of 131-137 Spring Street, a 73,000 square foot

mixed-use asset located in SoHo. Under the terms of the agreement,

Invesco will acquire an 80 percent stake in the property, with SL Green

retaining a 20 percent ownership interest as well as management and

leasing responsibilities. The transaction values the property at $277.8


Both transactions are expected to be completed in the third quarter,

subject to customary closing conditions.

SL Green President Andrew Mathias commented, “As illustrated by these

transactions, the demand for high-quality commercial assets in the

Manhattan market continues to be very strong, even as interest rates

have risen in recent months. After re-positioning both of these assets

to unlock additional value, we will realize in excess of $400.0 million

of net cash proceeds from these transactions, which were executed at a

blended cap rate of 3.3 percent.

He continued, “Our intention is to fund the Company’s pending

acquisition of the iconic 11 Madison property through a strategic

combination of property sales, joint ventures, new financing and

existing property debt refinancings, while retaining substantial cash

for other investments in the pipeline. These transactions announced

today are consistent with that plan.”

The 440,000-square-foot Tower 45 was acquired by SL Green in 2007 as

part of the merger with Reckson Associates. Subsequently, the Company

executed a significant capital improvement program that successfully

repositioned the property. Tower 45 is currently 96.2% leased. Richard

Baxter of Jones Lang LaSalle and Darcy Stacom of CBRE represented SL

Green on this transaction.

131-137 Spring Street, a six-story building in the heart of the popular

SoHo shopping district, features 100 feet of ground floor frontage on

Spring Street and houses the multi-level flagship stores for Diesel and

Burberry while the balance of the building includes office space and

residential rental units.

Isaac Zion, co-Chief Investment Officer of SL Green, commented, “These

transactions fit perfectly with the acquisition of 11 Madison, which is

well-leased for the long term and located in one of New York City’s

strongest commercial office submarkets. As we indicated at our December

Investor Conference, we expected to sell certain assets and create joint

ventures for others during 2015 and deploy the proceeds into more

accretive opportunities. Clearly, the pieces are coming together nicely.”

He added, “Not to be overshadowed by the bigger strategic picture — we

are very pleased to be forming this new venture with Invesco in SoHo. We

hold the Invesco real estate investment organization in extremely high

regard and their New York team shares our vision for this prime asset.

We look forward to working with them in an effort to create even greater

value in this incredibly well-positioned property, taking full advantage

of its deeply embedded growth potential as the area’s positive momentum


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 March 31, 2015, SL Green

held interests in 117 Manhattan buildings totaling 43.6 million square

feet. This included ownership interests in 29.0 million square feet of

commercial buildings and debt and preferred equity investments secured

by 14.6 million square feet of buildings. In addition to its Manhattan

investments, SL Green held ownership interests in 37 suburban buildings

totaling 5.9 million square feet in Brooklyn, Long Island, Westchester

County, Connecticut and New Jersey. For more information, please visit:

About Invesco Real Estate

Established in 1983, Invesco Real Estate manages $64.1 billion of

real estate investments, including $36.1 billion in direct real estate

investments and $28 billion in real estate securities (as of March 31,

2015). With more than 400 employees in 20 offices worldwide, the

Dallas-based group focuses on top-down market and property fundamentals

combined with bottom-up local market intelligence. Senior members

of the management team have worked together for more than 25 years,

contributing to the consistent implementation of Invesco’s investment

strategy and resulting performance. Additional information is available


Forward-looking Statement

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.


SL Green Realty Corp.
Andrew Mathias

Chief Financial Officer

Source: SL Green Realty Corp.

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