SL Green Announces Sale of Two Manhattan Properties


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

property owner and an S&P 500 company, today announced two transactions

with an aggregate value of $649 million:

1) An agreement to sell the leased fee interest in 885 Third Avenue for

a gross sale price of $453 million; and

2) An agreement to sell the recently-completed Pace University dormitory

tower at 33 Beekman Street for a gross sale price of $196 million. SL

Green owns the property in a joint venture.

SL Green acquired the leased fee interest in 885 Third Avenue in a joint

venture in 2007 at a gross asset valuation of $317 million and

subsequently fully consolidated its position in 2010 at a gross asset

valuation of $352 million. As part of the transaction, SL Green will

retain a preferred equity position. The sale, executed at a

capitalization rate of 3.8%, will generate net proceeds to SL Green of

approximately $45 million, after giving consideration to the retained

preferred equity interest and the in-place mortgage of $267.7 million,

which is scheduled to mature in 2017. The sale is expected to be

completed in the fourth quarter of 2015, subject to customary closing


33 Beekman was jointly developed by SL Green and the Naftali Group. It

houses 772 dormitory beds, and features a public plaza and ground-floor

retail and amenity space used by the university. The project is SL

Green’s second successful dormitory development for Pace, following on

the heels of a 609-bed dormitory and retail project at 180 Broadway,

which was completed and delivered in early 2013. The sale, executed at a

capitalization rate of 3.9%, will generate net proceeds to SL Green of

approximately $64 million. The sale is expected to be completed in the

first half of 2016, subject to customary closing conditions.

SL Green’s Co-Chief Investment Officer, David Schonbraun, commented,

“These sales are a continuation of our previously announced strategy in

connection with funding our acquisition of 11 Madison Avenue through the

sale of non-core and complex assets. The sale of 885 Third Avenue is the

realization of our third successful investment in a Manhattan leased fee

position, including Two Herald Square and 292 Madison Avenue, while the

sale of 33 Beekman further evidences the strength of SL Green’s internal

development team and their ability to construct high quality properties

that can meet the unique needs of space users.”

He continued, “There continues to be strong demand from both foreign and

domestic capital sources for New York City commercial real estate, and

we intend to continue to take advantage of market conditions to maximize

shareholder returns by selling mature assets and redeploying the

proceeds into more accretive investments.”

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, 2015, SL Green

held interests in 120 Manhattan buildings totaling 44.1 million square

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

commercial buildings and debt and preferred equity investments secured

by 15.1 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


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.
Matt DiLiberto
Chief Financial Officer

Source: SL Green Realty Corp.

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