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Gramercy, SL Green Pay for Lipstick Building Stake

NEW YORK CITY-The locally based companies agree to pay $317 million for a 79% interest and 21% leasehold interest in the 885 Third Ave. property.

By Natalie Dolce | Updated on July 18, 2007

(Read more on the debt and equity markets.)

NEW YORK CITY-Locally based, SL Green Realty Corp., a self-administered and self-managed REIT, and Gramercy Capital Corp., a New York City-based majority-owned subsidiary of SL Green, have agreed to pay $317 million for a 79% fee interest and 21% leasehold interest in the property located at 885 Third Ave., better known as the Lipstick Building.

Gramercy owns 45% of the investment in the 607,000-sf, 34-story, class A office building, with SL Green owning the remaining 55% stake. The transaction was financed with a $267.7-million, 10-year fixed rate loan by Goldman Sachs Commercial Mortgage Capital. Simultaneously, both companies have entered into a 70-year leasehold/sub-leasehold arrangement for the building.

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