NEW YORK--(BUSINESS WIRE)--Aug. 20, 2018--
SL Green Realty Corp., New York City’s largest office landlord, today
announced an agreement to sell its 48.9% interest in 3 Columbus Circle
to The Moinian Group, the current owner of the remaining 51.1% interest.
The sale is expected to generate net consideration of approximately
$223.0 million and will close in the fourth quarter of 2018, subject to
customary closing conditions.
SL Green acquired its interest in the 753,000 square foot property in
2011. Upon acquisition, SL Green and The Moinian Group initiated a
repositioning strategy which transformed the property into a Class-A
corporate address featuring Central Park views, prime retail, and
state-of-the-art building systems and amenities. Upon completion of the
capital program in 2012, a 214,000 square foot condominium interest was
sold to international marketing leader Young & Rubicam for $143.6
million, with the firm also signing a lease to serve as the anchor
tenant of the remaining 539,000 square foot condominium.
“The recent lease up of the vacant retail space marks the successful
completion of SL Green and The Moinian Group’s repositioning of 3
Columbus Circle” said David Schonbraun, Co-Chief Investment Officer
at SL Green. “With these significant improvements, we have
transformed the property into a premier Columbus Circle asset, and have
created substantial long-term value, as evidenced by our anticipated
internal rate of return in excess of 15% on the investment. We believe
now is the time to monetize our investment and recycle the capital into
more accretive opportunities, while taking advantage of minimal
transaction costs. The Moinian Group has been a great partner with whom
we have had consistent shared success, and we look forward to working
with them in the future.”
3 Columbus Circle is a Class-A building that occupies the entire block
between Broadway and Eighth Avenue, located just steps from the
roundabout at Columbus Circle, nine subway lines, Central Park,
world-class restaurants, and luxury retail. The property is currently
95% leased, reflecting the success of the repositioning effort that
began with 20% occupancy upon acquisition. The building-wide
redevelopment program included a new glass façade with expansive views
of Central Park, a relocated and expanded lobby, new elevators,
bathrooms, and security system. Major tenants include Young & Rubicam,
eMerge 212 and Jazz at Lincoln Center. The retail premise is anchored by
Nordstrom’s flagship location, which opened in April, 2018 and is the
retailer’s first New York City 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 June 30, 2018, SL Green
held interests in 116 Manhattan buildings totaling 49.3 million square
feet. This included ownership interests in 28.3 million square feet of
Manhattan buildings and debt and preferred equity investments secured by
21.1 million square feet of buildings. In addition, SL Green held
ownership interests in 21 suburban buildings totaling 2.9 million square
feet in Brooklyn, Westchester County, and Connecticut.
Forward-looking Statement
This press release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be covered
by the safe harbor provisions thereof. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that we expect, believe or
anticipate will or may occur in the future, are forward-looking
statements. Forward-looking statements are not guarantees of future
performance and we caution you not to place undue reliance on such
statements. Forward-looking statements are generally identifiable by the
use of the words "may," "will," "should," "expect," "anticipate,"
"estimate," "believe," "intend," "project," "continue," or the negative
of these words, or other similar words or terms.
Forward-looking statements contained in this press release are subject
to a number of risks and uncertainties, many of which are beyond our
control, that may cause our actual results, performance or achievements
to be materially different from future results, performance or
achievements expressed or implied by forward-looking statements made by
us. Factors and risks to our business that could cause actual results to
differ from those contained in the forward-looking statements are
described in our filings with the Securities and Exchange Commission. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of future events, new information or
otherwise.
SLG – A&D
View source version on businesswire.com: https://www.businesswire.com/news/home/20180820005049/en/
Source: SL Green Realty Corp.
SL Green Realty Corp.
slgreen@berlinrosen.com
646.452.5637
