Off-Market Acquisition Marks SL Green’s Strategic Entry into Hudson
Yards District
NEW YORK--(BUSINESS WIRE)--Dec. 3, 2018--
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has entered into a contract to
purchase a majority and controlling interest in 460 West 34th
Street, in Manhattan. The transaction values the 20-story Class-A office
building at a gross purchase price of $440 million. After taking into
account earlier structured investments made through SL Green’s Debt and
Preferred Equity platform, SL Green’s blended average basis in the
property will be $528 per square foot .The transaction is expected to
close in the first half of 2019, subject to customary closing conditions.
The property is located along the full block front of 10th Avenue
between 33rd and 34th Streets in the heart of the Hudson Yards submarket
and directly across the street from the new Manhattan West development
projects. The investment marks SL Green’s first major investment in the
Hudson Yards neighborhood. SL Green will execute a comprehensive
building wide redevelopment including relocation of the building
entrance from the 34th Street side of the building to 33rd Street plus
new elevators, storefronts, windows and infrastructure. The
redevelopment will feature activation of numerous roof setback terraces.
New oversized, industrial design windows, 13’ high floor slabs with
mushroom capped columns and new in-lobby coffee bar will provide an
exciting and creative work environment in contrast to the surrounding
new glass skyscrapers. The building’s location, in close proximity to
the new Penn Station transit center, is singularly convenient to the
many new neighborhood amenities emerging as part of the new Hudson Yards
and Manhattan West developments.
SL Green’s Managing Director, Brett Herschenfeld, commented,
“Through our direct real estate relationships, we were able to finance
multiple off-market investments in the Property. Following a series of
successful negotiations, those investments are now resulting in
ownership of a controlling majority, direct ownership stake in a
building which will undoubtedly deliver value to our shareholders in the
years to come.”
SL Green’s Executive Vice President, Director of Leasing and Real
Property, Steven Durels, added, “We believe this is an incredible
opportunity for SL Green to reposition the building as a creative
alternative, which will appeal to tenants seeking a high design
industrial vibe with modern infrastructure while also being highly
competitive in location, amenities and rent.”
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 September 30, 2018, SL
Green held interests in 106 Manhattan buildings totaling 46.4 million
square feet. This included ownership interests in 28.2 million square
feet of Manhattan buildings and 18.2 million square feet of buildings
securing debt and preferred equity investments.
In addition, SL Green held ownership interests in 15 suburban buildings
totaling 2.3 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/20181203005245/en/
Source: SL Green Realty Corp.
Investors:
Matt DiLiberto
Chief Financial Officer
SL
Green Realty Corp.
(212) 594-2700
Press:
BerlinRosen
slgreen@berlinrosen.com
(646)
452-5637
