NEW YORK, Jan. 4 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG)
announced today that it has signed a contract with Graybar Building Associates
to purchase its sub-leasehold interest in 420 Lexington Avenue (The Graybar
Building) for $27.3 million.  The sub-leasehold expires on December 30, 2008
with one 21-year renewal term expiring on December 30, 2029.  A closing is
scheduled for early January, 1999.  Peter L. Malkin is the managing partner in
Graybar Building Associates, which was created in 1958 and has been supervised
and represented from inception by Wien & Malkin LLP.
    Earlier this year, SL Green had acquired the long-term operating
leasehold of The Graybar Building for $79.6 million.  The 31-story, 1.2
million square foot Graybar Building overlooks Grand Central Terminal, a
central transportation hub that is presently undergoing extensive renovations,
including the development of new retail stores, restaurants and attractive
public spaces designed to make the Terminal a retail destination in addition
to a transportation center.
    SL Green Realty is a self-administered and self-managed real estate
investment trust ("REIT") that acquires, owns and manages a Class B Manhattan
office portfolio.  Its portfolio consists of 18 properties, comprising
approximately 6.2 million rentable square feet.  The Company is the only
publicly held REIT which exclusively specializes in this geographic area
property type.
    This press release contains forward-looking information based upon the
Company's current best judgment and expectations.  Actual results could vary
from those presented herein.  The risks and uncertainties associated with the
forward-looking information include the strength of the commercial office and
industrial real estate markets in which the Company operates, competitive
market conditions, general economic growth, interest rates and capital market
conditions.  For further information, please refer to the Company's filings
with the Securities and Exchange Commission.

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