$175 Million Redevelopment Nears Completion
SL Green to Launch Building Re-Positioning Plan and Commence Leasing
New York, NY – January 31, 2011 – SL Green Realty Corp. (NYSE: SLG), New York City’s largest owner of commercial office properties, and The Moinian Group, headed by national developer Joseph Moinian, today announced they have completed the recapitalization of 3 Columbus Circle – a Midtown Manhattan office tower currently in the final stage of a comprehensive building wide redevelopment.
The recapitalization includes a $138 million equity investment by SL Green, a portion of which will be in the form of SL Green Operating Partnership Units. The property is now fully capitalized for all costs necessary to complete the redevelopment and lease-up of the building. The existing mortgage has been refinanced with a bridge loan provided by SL Green and Deutsche Bank, which is intended to be further refinanced by third party lenders at a later date.
SL Green will lead a multi-million dollar leasing and marketing program funded by the partnership to re-position the development and attract large office users seeking upscale space at one of midtown’s most desirable locations. The Moinian Group is finalizing completion of the $175 million capital program. 3 Columbus Circle will be operated as a premier Class-A building consistent with the high standards of SL Green’s finest assets.
The completion of the recapitalization follows the settlement of a dispute regarding the previous mortgage. Under the settlement agreement, German American Capital Corporation and the Related Companies have relinquished all claims on the property and the lender liability litigation has been withdrawn as against those parties. Further details of the settlement were not disclosed.
The transaction announced today clears the way for 3 Columbus Circle to immediately emerge as Midtown Manhattan’s most exciting new business address. The 26-story 768,565-square-foot property located at 1775 Broadway occupies the entire block between Broadway and Eighth Avenue and between 57th and 58th streets. It overlooks Columbus Circle and the southwest entrance to Central Park. The SL Green leasing team, which has achieved notable success in re-positioning several other large Midtown redevelopments over the past decade, is initiating an aggressive marketing program.
Joseph Moinian, Chairman and Chief Executive Officer of The Moinian Group, stated “We have been confident of this outcome from Day One and the completion of this recapitalization vindicates all of our efforts at 3 Columbus Circle. The property is fully capitalized and well positioned to meet the immediate and long-term needs of the finest office tenants in New York. We are excited to start off 2011 on such a high note and are delighted to have such an excellent partner as SL Green to make available to tenants an exceptional building in one of Manhattan’s most prestigious business neighborhoods.”
Marc Holliday, Chief Executive Officer of SL Green, stated, “We’re very excited about the prospects for 3 Columbus Circle as our joint venture completes construction and brings the building to the leasing market just as demand for large blocks of well-located, high-quality office space is on the rise. We expect this to be a very successful venture for both us and The Moinian Group. We’ve had a longstanding, successful relationship with Joe Moinian and we are happy to be joining forces once again.”
FTI Schonbraun McCann acted as advisors for this transaction.
About The Moinian Group
The Moinian Group is widely regarded as one of the industry’s most active development firms. It owns approximately 20 million square feet of property across the United States. Its team of seasoned professionals, hands-on management style and a strategic approach to investment and growth has armed the firm with the tools necessary to take advantage of the unique opportunities available in the real estate marketplace.
About SL Green
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 December 31, 2010, the Company owned interests in 30 New York City office properties totaling approximately 22,324,460 square feet, making it New York’s largest office landlord. In addition, at December 31, 2010, SL Green held investment interests in, among other things, 11 retail properties encompassing approximately 405,362 square feet, four development properties encompassing approximately 465,441 square feet and three 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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For SL Green:
Director, Investor Relations
SL Green Realty Corp.
For Moinian Group:
Great Ink Communications