New York, NY – September 7, 2010 – SL Green Realty Corp. (NYSE: SLG) today announced that it has entered into a contract to sell 19 West 44th Street in Midtown Manhattan for $123.2 million, or $422 per square foot, to Deka Immobilien (“Deka”).
The sale marks the completion of another successful repositioning effort by SL Green, New York City’s largest commercial office landlord. SL Green acquired the 292,000 square foot class B office building situated on “Club Row” between 5th and 6th Avenues in 2004 for $67.0 million. Following SL Green’s acquisition, it implemented a strategic repositioning plan for the building that included lobby and window upgrades, HVAC improvements, and other improvements designed to attract new tenants and enhance the building’s profile. Occupancy in the building increased from 86% when acquired to the current 99% level.
The approximately $118 million in net proceeds generated by the sale will be reinvested in a tax efficient manner in connection with its recently announced acquisition of 125 Park Avenue in Midtown Manhattan.
Under the terms of the agreement, SL Green will continue to manage and lease the property on behalf of Deka Immobilien.
Andrew Mathias, President and Chief Investment Officer of SL Green, stated, “This transaction underscores SL Green’s strong reputation of identifying and unlocking value in New York City office buildings. It also marks another positive step toward what we hope will be a full recovery of the Manhattan office market, which we believe is occurring more quickly than in any other major U.S. city.”
Darcy Stacom and William Shanahan from CBRE acted on behalf of SL Green in the transaction. The sale is targeted to close during the third quarter, 2010, subject to customary closing conditions.
About SL Green Realty Corp.
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 June 30, 2010, the Company owned interests in 30 New York City office properties totaling approximately 22,012,215 square feet, making it New York’s largest office landlord. In addition, at June 30, 2010, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 374,812 square feet, three development properties encompassing approximately 399,800 square feet and two 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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President & Chief Investment Officer
Director, Investor Relations
SL Green Realty Corp.