NEW YORK--(BUSINESS WIRE)--
SL Green Realty Corp (NYSE:SLG), New York City's largest commercial
property owner, today announced it has closed on the refinancings of 800
Third Avenue and Jericho Plaza and the construction financing for 719
Seventh Avenue.
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SL Green, along with its joint venture partners, successfully closed
on the refinancing of 800 Third Avenue. The new 10-year, $177
million mortgage loan features a fixed interest rate of 3.17%,
subject to up to a 20 basis point increase under certain conditions,
and replaces the previous $20.9 million mortgage that was set to
mature in August, 2017. SL Green, which owns a 60.5% interest in the
asset, received approximately $89 million in net proceeds from the
transaction.
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Located in the Grand Central submarket, 800 Third Avenue is a
565,000 square foot, 40-story, Class A office building that is
currently 96% occupied.
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SL Green, along with its joint venture partners, completed the
recapitalization of Jericho Plaza by securing a new 2-year (subject
to three 1-year extension options) floating rate mortgage with an
interest rate of 4.15% over LIBOR. The initial funding was
approximately $75 million with a total expected funding of $100
million. The refinancing closed simultaneously with a series of
transactions culminating in the property being owned in a new
venture that continues to include SL Green and Onyx Equities, along
with other partners. The venture will implement a capital
improvement plan that includes lobby and elevator cab renovations,
addition of a conference facility, and landscaping upgrades. SL
Green, which owns an 11.67% non-controlling interest in the venture,
received approximately $8.4 million in net proceeds from the
refinancing and will continue to share management/leasing
responsibilities with Onyx Equities.
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Located immediately off the Long Island Expressway, the two-property
complex totals 662,000 rentable square feet, on nearly 49 acres of
land. The amenity-rich property features a full service health club
with locker rooms and fitness classes, abundant surface parking, and
multiple dining options.
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SL Green has secured construction financing of a retail development
site at 719 Seventh Avenue. The 2-year (subject to one 1-year
extension option) $44 million loan features a floating interest rate
of 3.05% over LIBOR, with the ability to reduce the spread to 2.55%
upon achieving certain hurdles. SL Green, which owns a 75% interest
in the asset, received approximately $21 million in net proceeds at
the closing of the transaction, with the balance of the loan
proceeds being used to complete the construction.
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Located in Times Square, 719 Seventh Avenue will become a prime
retail flagship location featuring approximately 10,000 square-feet
and an extensive LED signage program. Construction completion is
estimated to occur prior to the 2016 holiday season.
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SL Green President, Andrew Mathias, commented, "The successful
completion of these transactions provides evidence that liquidity
continues to be available for high-quality borrowers. The refinancings
of 800 Third and Jericho represent another stride in our effort to
extend the term of secured debt maturities, reduce cost and generate
incremental proceeds, while the construction financing secured at 719
Seventh speaks to SL Green's ability to recognize value and lock in low
borrowing rates for a property set to benefit from its prime retail
location."
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York City's largest
office landlord, is a fully integrated real estate investment trust, or
REIT, that is focused primarily on acquiring, managing and maximizing
value of Manhattan commercial properties. As of December 31, 2015, SL
Green held interests in 121 Manhattan buildings totaling 48.3 million
square feet. This included ownership interests in 30.5 million square
feet of commercial buildings and debt and preferred equity investments
secured by 17.8 million square feet of buildings. In addition to
its Manhattan investments, SL Green held ownership interests in 33
suburban buildings totaling 5.1 million square feet in Brooklyn, Long
Island, Westchester County, Connecticut and New Jersey.
SLG-FIN
View source version on businesswire.com: http://www.businesswire.com/news/home/20160222005732/en/
Matt DiLiberto
Chief Financial Officer
SL Green Realty Corp.
212
594-2700
Source: SL Green Realty Corp
News Provided by Acquire Media
