SL Green Closes NYC’s Biggest Deal So Far In 2016
Citigroup has closed on the purchase of its HQ building at 388-390 Greenwich St in Tribeca for $1.76B.
The two combined buildings had been owned by the bank before a sale to SL Green and Ivanhoé Cambridge in 2007 for $1.6B, a deal that included an option to buy the buildings back. The asset totals more than 2.3M SF, and Citigroup is currently its only tenant.
When the sale was first announced in January, SL Green said it was selling the property for $2B. After accounting for "unfunded tenant concessions," the final price was pushed down more than $200M, The Real Deal reports.
The bank has used the property as its global HQ since this January, and is undertaking a renovation there. SL Green has been the sole owner of the building since buying out Ivanhoé Cambridge for $783M in 2014.
The REIT has been expecting the sale would close for a while, having announced in April that it would use the money to “to repay approximately $345M of its corporate credit facility and retire the $1.45B mortgage,” which it owes to Wells Fargo. [TRD]