High Yielding Transaction Leverages SL Green's Expertise and Strategy of
Diversifying Among Investment Types within the Class B Office Market
NEW YORK, April 12 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG)
("SL Green") announced today that it has originated and funded a $20.0 million
second mortgage bridge loan to finance 521 Fifth Avenue Partners, LLC's
acquisition of a 440,000 square foot office building located at 521 Fifth
Avenue in the Grand Central District of New York City. Goldman Sachs Mortgage
Company purchased a 50% participation in the investment. SL Green will
asset manage the mortgage investment.
SL Green's investment in this second mortgage facility is in line with
the Company's stated strategy of allocating a portion of its assets to
high-yielding debt and preferred equity investments involving profile Class B
office properties in Manhattan and aligning itself with reputable borrowers
and/or partners.
Commenting on the transaction, Marc Holliday, Chief Investment Officer for
SL Green noted, "High yielding debt and preferred equity investments provide
SL Green with another venue to capitalize on the Company's well-established
Class B office franchise. In this case, we were able to leverage off of our
existing expertise in the ownership and management of similar Class B
properties in order to source an investment opportunity directly through the
Company's relationship network. Our ability to structure, underwrite and
close this transaction in under three weeks enabled us to take advantage of
this unique opportunity."
The total deal capitalization included the borrower's purchase of the
property and all related closing costs, plus fully funded capital reserves for
base building improvements and budgeted leasing costs. A $50.0 million first
mortgage was arranged by Landesbank Hessen-Thuringen Girozentrale (Helaba
Bank) with Bayerische Landesbank Girozentrale acting as a co-lender. The
total debt exposure secured by the first and second mortgages on the
property totaled $70.0 million or $159 per square foot.
David Nettina, President and Chief Operating Officer of SL Green
stated, "This transaction gives SL Green diversification among investment
types within our property class, allowing us to fully exploit our knowledge of
the market. These investments will be pursued on a limited and targeted
basis in either a debt or preferred equity structure. Our ability to offer a
portion of these investments to recognized financial institutions affords us
both diversity of risk as well as a means to increase the breadth of our
equity base."
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. 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.
SOURCE SL Green Realty Corp.
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Related links:
http://www.slgreen.com
CONTACT:
Stephen L. Green, Chairman, David Nettina,
President & Chief Operating Officer, 212-594-2700, both of SL
Green Realty Corp., or General Info., Paula Schwartz or Michael
Lawson, Analyst Info., Pamela King, Media Info., Judith
Sylk-Siegel, 212-661-8030, all of The Financial Relations Board
NOTE TO EDITORS: To receive SLG's latest news release and other
corporate documents via FAX - no cost - dial 1-800-PRO-INFO. Use
company's symbol, SLG. Visit SL Green's website at
http://www.slgreen.com or SL Green's pages as http://www.frbinc.com
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