SL Green Recapitalizes 2 Herald Square & Signs Four Transactions Totaling 177,081 Square Feet

Building Occupancy Rises Above 93%

SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has secured $150 million of first
mortgage financing for 2 Herald Square, and sold a 49% partnership
interest to an Israeli institutional investor. The recapitalization is
the first step of a value-add capital program that will restore iconic
status to this best-in-class building located on one of the most
prominent corners in New York.

In addition, SL Green announced the signing of four transactions at the
Property, totaling 177,081 square feet:

(i) the execution of an agreement to convey a 30-year leasehold
condominium covering 95,370 square feet to Mercy College;

(ii) the signing of a new 29,388-square-foot lease to expand WeWork; and,

(iii) the signing of new retail leases with Victoria Secret and with
Happy Socks, filling a recaptured Sixth Avenue lobby space that SL Green
converted into a retail opportunity.

Mercy College’s 30-year transaction covers the building’s third, fourth
and seventh floors and brings Mercy’s total footprint to 95,370 square
feet from its existing 55,000 square feet. As part of the transaction,
Mercy will also receive a new dedicated 34th Street lobby by relocating
its ground floor entrance and absorbing a portion of previously vacant
retail space.

WeWork has expanded its footprint within the building with a new
29,388-square-foot lease. Amazon, through WeWork’s enterprise client
account, currently occupies 122,903 square feet across floors eight
through 11 and the penthouse. Following the lease expansion, WeWork will
also occupy a new dedicated lobby space located on 35th

Building on the momentum already started from Victoria’s Secret’s recent
corner extension, Happy Socks signed a new retail lease on Sixth Avenue,
fronting Herald Square. Together, these transactions raise the building
occupancy to 93.2%.

“Following our successful acquisition of the leasehold at 2 Herald
Square, we executed our business plan ahead of schedule by expanding
existing tenants from within as well as adding a new tenant to our
roster,” said Brett Herschenfeld, Managing Director at SL Green,
who continued. “In just six months, we have shown that with strong
management and capital investment, this asset in a prime Herald Square
location immediately attracts global capital and tenants.”

Located on a corner of Herald Square – at the intersection of Sixth
Avenue, Broadway, and 34th Street – 2 Herald is a 369,000-square-foot
office and retail asset at one of Manhattan’s busiest locations and most
vibrant retail and office submarket.

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 September 30, 2018, SL
Green held interests in 106 Manhattan buildings totaling 46.4 million
square feet. This included ownership interests in 28.2 million square
feet of Manhattan buildings and 18.2 million square feet of buildings
securing debt and preferred equity investments. In addition, SL Green
held ownership interests in 15 suburban buildings totaling 2.3 million
square feet in Brooklyn, Westchester County, and Connecticut.

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


Source: SL Green Realty Corp.

Matt DiLiberto
Chief Financial Officer
Green Realty Corp.
(212) 594-2700