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New York's Largest Office Landlord Refinances Trophy Office Tower for $214M at 6.64% Interest Rate
(NEW YORK, NY) -- SL Green Realty Corp. (NYSE: SLG) is proving the nation's realty capital markets are bouncing back.
The New York City-based REIT has closed a $215 million refinancing of 100 Park Avenue, the completely redeveloped 'New Modern Classic' near Grand Central Terminal.
SL Green owns the 36-story, 825,815-square foot, class A office building in a joint venture with institutional investors advised by Prudential Real Estate Investors.
The building's new mortgage was provided by a bank group led by DekaBank, and Helaba, and also includes PB Capital Corporation, Westdeutsche ImmobilienBank AG (WestImmo), and Modern Bank.
The transaction generated approximately $40 million in additional proceeds to the joint venture, which is intended to be used to complete the redevelopment and the continued lease up of the property, as well as provide residual cash proceeds to the partners.
The financing, provided at a 6.64% fixed rate, matures in 2014 and features two, one-year extension options. It enables the joint venture to retire the former $175 million mortgage.
Marc Holliday, Chief Executive Officer of SL Green, says "This transaction perfectly illustrates three of SL Green's greatest competitive advantages in the market: its strong and growing relationships with its lenders, its ability to create value through strategic redevelopment, and its reputation as New York's Landlord of Choice which attracts and retains quality tenants."
Marc Holliday
"It now stands tall as one of Midtown's most attractive business addresses and hosts a world-class roster of tenants including BDO Seidman and Wells Fargo Trade Capital."
Holliday says the joint venture, through SL Green, embarked upon a comprehensive $72 million capital program at 100 Park Avenue in 2007, which substantially upgraded the 1950's office tower.
Today, the asset, situated between 40th and 41st Streets, features a sleek glass curtain wall, a stunning, fully modernized marble lobby, upgraded common corridors and elevators, a new cooling plant, increased electric capacity and state-of-the-art security systems.
Holliday says the success of the redevelopment at 100 Park Avenue has resulted in both industry and tenant recognition for SL Green. The building earned Silver LEED certification in June 2009 and was recently recognized as BOMA International's Renovated Building of the Year.
Prior to receiving the international recognition, 100 Park Avenue was honored with BOMA's Pinnacle Award in 2008 for Best Renovated Office Building in New York and the Middle Atlantic regional award in 2009 in the same category.
'Perhaps more importantly, tenants have recognized 100 Park Avenue as an address of choice in Midtown," says Holliday.
Since the redevelopment commenced, the building has attracted several new tenants, including the previously mentioned BDO Seidman and Wells Fargo Trade Capital, as well as Aetna Life Insurance Co., and has retained Ameriprise Financial Company.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche, says Holliday.
As of June 30, 2009, the Company owned interests in 29 New York City office properties totaling approximately 23,211,200 square feet, making it New York's largest office landlord.
SL Green also holds investment interests in eight retail properties totaling about 400,212 square feet, three development properties totaling about 399,800 square feet and two land interests, along with ownership interests in 32 suburban assets totaling 6,949,700 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.
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