REIT Closes on Property and Simultaneously Announces 66,735 Foot Lease Signing
 With Crain Communications; Publisher Moving From Former Daily News Building

    NEW YORK, July 2 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG) today
completed the purchase of the 520,000 square foot office tower at 711 Third
Avenue in Manhattan and simultaneously announced that it had leased over half
of the vacant space in the building -- a total of 66,735 square feet -- to
Crain Communications Inc. for its New York headquarters.
    The publishing firm, which took the entire second floor and half of the
third, will relocate its New York editorial and sales offices, including those
of its four New York-based publications -- Crain's New York Business, Ad Age,
Pensions & Investments, and Investment News -- to the 20-story post-war tower
in the spring of 1999.  Those operations, which employ approximately 200
people, are presently headquartered in 50,000 square feet on non-contiguous
floors at the former Daily News Building at 220 East 42nd Street.
    Timothy Gibson, Ivan Hillman and Mary Ann Tighe of Insignia/ESG, Inc.
represented Crain Communications in the long-term leasing transaction while
Gerard Nocera of SL Green Realty Corp. and Paul Glickman of Cushman and
Wakefield represented the building.  The lease is valued at over $25 million.
    "We're delighted to welcome such a prestigious publishing company to a
building that already has a very strong media presence," stated SL Green
Chairman Stephen Green.  Among the major tenants at 711 Third Avenue are
Dun & Bradstreet and Parade Publications.  Eddie Bauer occupies the building's
prime retail frontage.
    In its latest property acquisition, SL Green Realty Corp. purchased 711
Third Avenue for cash and operating partnership units valued at $61.4 million
or approximately $156 per square foot.  The complex transaction involved SL
Green acquiring 50% of the fee interest from The Swig Investment Company and
100% of the existing leasehold mortgage from the New York State Common
Retirement Fund as well as the creation of an operating sublease to SL Green.
The remaining portion of the fee interest is held by The Weiler Arnow
Investment Company.
    Occupying the entire easterly blockfront between 44th and 45th Streets in
close proximity to the Grand Central District, "711" was the first office
tower to rise on the thoroughfare after the demolition of the Third Avenue El.
Its purchase follows closely behind SL Green's recent acquisitions of the
long-term operating leasehold of The Graybar Building, located at 420
Lexington Avenue, and the landmark building formerly known as the Bowery
Savings Bank, located at 110 East 42nd Street -- both of which are in the
heart of the resurgent Grand Central District.
    With the addition of 711 Third Avenue, SL Green's real estate portfolio
now consists of 19 properties, encompassing approximately six million rentable
square feet.
    SL Green Realty Corp. is a fully integrated, self-administered and
self-managed real estate investment trust ("REIT") which primarily owns,
manages, leases, acquires and repositions Class B office properties in
Manhattan.
    Crain Communications is a privately owned publishing company producing
29 business, trade and consumer newspapers  and  magazines.  It has over 900
employees located in 16 offices in the United States, England and Japan.

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