New York, NY – September 30, 2009 – (RealEstateRama) — SL Green Realty Corp. (NYSE: SLG) today announced the closing of a $215 million refinancing of 100 Park Avenue, the completely redeveloped ‘New Modern Classic’ near Grand Central Terminal, which it owns in a joint venture with institutional investors advised by Prudential Real Estate Investors.
The building’s new mortgage was provided by a bank group led by DekaBank, and Helaba, and also includes PB Capital Corporation, Westdeutsche ImmobilienBank AG (WestImmo), and Modern Bank. The transaction generated approximately $40 million in additional proceeds to the joint venture, which is intended to be used to complete the redevelopment and the continued lease up of the property, as well as provide residual cash proceeds to the partners.
The financing, provided at a 6.64% fixed rate, matures in 2014 and features two, one-year extension options. It enables the joint venture to retire the former $175 million mortgage.
Marc Holliday, Chief Executive Officer of SL Green, stated, “This transaction perfectly illustrates three of SL Green’s greatest competitive advantages in the market: its strong and growing relationships with its lenders, its ability to create value through strategic redevelopment, and its reputation as New York’s Landlord of Choice which attracts and retains quality tenants.”
Mr. Holliday continued, “Our ability to complete this transaction successfully provides fresh evidence that there is liquidity available for high-quality borrowers and office investments in midtown Manhattan. It also is a direct reflection of the value we’ve added by completely modernizing this property and adding various sustainability elements. It now stands tall as one of Midtown’s most attractive business addresses and hosts a world-class roster of tenants including BDO Seidman and Wells Fargo Trade Capital.”
The joint venture, through SL Green, embarked upon a comprehensive $72 million capital program at 100 Park Avenue in 2007, which substantially upgraded the 1950’s office tower. Today, the 36-story, 825,815-square foot asset situated between 40th and 41st Streets, features a sleek glass curtain wall, a stunning, fully modernized marble lobby, upgraded common corridors and elevators, a new cooling plant, increased electric capacity and state-of-the-art security systems.
The success of the redevelopment at 100 Park Avenue has resulted in both industry and tenant recognition for SL Green. The building earned Silver LEED certification in June 2009 and it was recently was recognized as BOMA International’s Renovated Building of the Year. Prior to receiving the international recognition, 100 Park Avenue was honored with BOMA’s Pinnacle Award in 2008 for Best Renovated Office Building in New York and the Middle Atlantic regional award in 2009 in the same category. Perhaps more importantly, tenants have recognized 100 Park Avenue as an address of choice in Midtown. Since the redevelopment commenced, the building has attracted several new tenants, including the previously mentioned BDO Seidman and Wells Fargo Trade Capital, as well as Aetna Life Insurance Company, and it has retained Ameriprise Financial Company.
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, 2009, the Company owned interests in 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York’s largest office landlord. In addition, at June 30, 2009, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 400,212 square feet, three development properties encompassing approximately 399,800 square feet and two land interests, along with ownership interests in 32 suburban assets totaling 6,949,700 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.
To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212-216-1601.
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Gregory F. Hughes
Chief Operating Officer and
Chief Financial Officer