1412 Broadway -- The 389,000 Square Foot Fashion Gallery Building
First Mortgage on 636 11th Avenue
NEW YORK, Aug. 14 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG)
announced today that it has purchased 1412 Broadway -- The Fashion Gallery
Building -- for $72 million, plus approximately $5 million for reimbursement
of loan prepayment charges and $5 million related to capital expenditures,
commissions and other closing costs.
The 389,000 square foot, 25-story office building, features 20,000
square-foot floorplates, and has undergone over $5 million in renovations over
the last four years. The current occupancy level, including pending leases,
is 89.5%.
According to Stephen L. Green, Chairman and Chief Executive Officer of SL
Green Realty Corp., the Fashion Gallery Building, located in the heart of the
Times Square District, is one of the five best fashion buildings in New York.
He said the acquisition will aid in establishing a more dominant position for
the Company in the Times Square South Submarket.
"The Fashion Gallery Building complements our other properties at 1466 and
1372 Broadway," said Mr. Green. "We acquired 40,000 square feet of existing
vacant space, and over 97,500 square feet of leases expiring within the next
five years which are below current market rents. With a fashion tenant base
that traditionally requires little or no tenant improvements, we expect this
property to contribute not only to FFO growth but also to FAD on a near term
basis."
The Fashion Gallery Building is home to such prominent anchor tenants as:
Escada, Leslie Fay Inc., and Kasper (USA), Inc. These anchor tenants enhance
the market appeal of this property to future tenants.
SL Green also announces that it has closed the acquisition of an existing
first mortgage on 636 11th Avenue, which is a 469,000 square foot industrial
and warehouse block front property located between 46th and 47th Streets for
$10.9 million. This acquisition is the first step in acquiring the entire fee
interest in the property which is contracted to occur in January 1999. Total
acquisition costs, inclusive of the mortgage interest in the property, will be
approximately $32.5 million.
Subsequent to the 1412 Broadway acquisition, SL Green's portfolio
will consist of 18 properties, encompassing approximately 6.3 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.
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 real estate market, 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 Green, Chairman & CEO, or David
Nettina, President & COO, both of SL Green Realty Corp.,
212-594-2700; or General Info, Paula Schwartz & Michael Lawson,
Analyst Info, Pamela King, or Media Info, Alan Goldsand, all of
The Financial Relations Board, 212-661-8030
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. Or visit SL Green's website at
http://www.slgreen.com
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