SL GREEN'S $193M SCORE!

In a strategic market move for NYC's largest landlord, SL Green just entered into an agreement to acquire the 303k-SF, 36-story 600 Lexington Ave. for $193M from a JV led by Hines US Core Office Fund. SL Green has been building its cash position in order to take advantage of opportunities quickly as the market recovers, said CEO Marc Holliday in a release this morning.
Marc says recent improvements in office fundamentals and the credit markets have resulted in the NYC real estate market opening up after two years of a dearth of institutional quality offerings. The building is 93.6% leased, predominantly to boutique full-floor office tenants; over the next three years, leases for approximately 54% of the building's RSF expire, providing the opportunity for SL Green to employ a targeted leasing and marketing campaign to reposition and reintroduce the building in the improving marketplace. In connection with the acquisition, SL Green will assume $49.9M of in-place financing; the 5.74% interest-only matures in March '14. Greenberg Traurig repped the buyer, CBRE repped the seller.

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Related Topics: Hines US Core Office Fund
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