The buildings will be occupied by a financial services tenant under the terms of a 13-year triple-net lease that provides for annual rental increases. The initial rental payments will provide a 6.3% un-leveraged return on the purchase price. Due to confidentiality provisions in the purchase agreement, SL Green was unable to provide further details of the acquisition at this time.
The transaction, which is subject to customary closing conditions, is expected to close this month. Mortgage financing will be provided by Westdeutsche ImmobilienBank AG and PB Capital Corp. Cushman & Wakefield Sonnenblick-Goldman LLC exclusively arranged the financing.
"As the largest property transaction since the current credit market difficulties began, it demonstrates our company's overall reputation as a preferred landlord, our strong financial condition, and our ability to take advantage of compelling investment opportunities as they arise," notes SL Green CEO Marc Holliday in a prepared statement. "We continue to enjoy a successful working relationship with SITQ, with whom we have previously co-invested on several occasions."
Paul Campbell, president and CEO of SITQ, says in the statement that the company sees this as a "terrific way to invest in some of Downtown Manhattan's truly iconic properties. To do so alongside SL Green…made it all the more attractive to us. As New York City market conditions continue to evolve, we will look for additional opportunities."
As of Sept. 30, SL Green owned 31 New York City office properties totaling approximately 22.4 million sf. SITQ owns real estate assets consisting of 114 properties representing more than 35 million sf of leasable space.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
