NEW YORK CITY-After hinting at it during REITWeek last Tuesday, SL Green Realty Corp. has hit a double-whammy at 100 Church Street. The REIT has re-uped New York City Department of Law’s 372,520-square-foot lease for 20 years and received a new loan from Wells Fargo for the 21-story, 1.05 million-square-foot Downtown office building, the company unveiled in a statement this morning. The deals were first reported by the New York Post.
The city’s lease, which was set to expire in October 2013, will commence in November 2013 covering floors 2-6 and a portion of the building’s concourse level. On the financial side, SL Green has also refinanced the building with a $230 million, 10-year loan bearing interest at a rate of 4.675%, replacing a previous Wachovia loan. The company says proceeds from the financing will be used for “general corporate purposes.”
Steven Durels, executive VP and director of leasing and real property at SL Green, says in a statement that city’s decision to extend its commitment at 100 Church is a “testament to the quality” of the building’s redevelopment, which was completed in 2011. “This early renewal is consistent with our firm’s proactive management of future lease expirations which has led to consistently high portfolio occupancy,” he adds.
In 2010, SL Green acquired 100 Church after it had been 56% vacant for more than five years. After a comprehensive repositioning of the property, including upgrades to the lobby, windows, infrastructure, roofs and retail space, building occupancy is now 82%. Other tenants here include HealthFirst, Niche Media, Interactive Data Corp., Centerline Capital Group and the State of New York.
CBRE’s Michael Geoghegan and John Morrill represented the City of New York on the transaction. Peter Strauss, Esq. and Christopher Smith Esq. of Shearman & Sterling acted on behalf of SL Green, and Caroline Silk, Esq. represented the City of New York in-house.
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