GlobeSt.com UPDATE: SL Green Teams With Gramercy on One Madison

NEW YORK CITY-SL Green and its affiliate Grammercy Capital Corp. will joint venture in the acquisition of the South Building at One Madison Ave. When SL Green first announced its acquisition of One Madison, the locally based REIT said it was interested in find a partner for the South portion. The site consists of two contiguous buildings–the South Building and the North Tower totaling approximately 1.4 million sf.

Gramercy will own a 45% interest and SL Green will own a 55% interest in the 1.2-million-sf South Building. The property is almost entirely occupied by Credit Suisse First Boston, New York pursuant to a 15-year remaining term lease. Gramercy and SL Green will acquire the building on a pari passu basis for approximately $803 million. The closing is scheduled for the second quarter of 2005. SL Green and CSFB currently intend to physically separate the South Building and the North Tower and convert the North Tower to residential condominiums. SL Green and CSFB will share in the profits of the residential component. Gramercy elected not to invest in the residential portion.