Press Release Details

SL Green Realty Corp. Purchases Preferred Equity Interest in The News Building

Sep 10, 2001 at 12:00 AM EDT
SL Green Realty Corp. Purchases Preferred Equity Interest in The News Building NEW YORK--(BUSINESS WIRE)--Sept. 10, 2001--SL Green Realty Corp. (NYSE: SLG) announced today that it has purchased a $53.5 million preferred equity interest in The News Building, an 1.1 million square foot office building located at 220 East 42nd Street, New York. The interest was acquired from affiliates of The Witkoff Group and DRA Advisors, Inc. who continue to own a majority interest in the property. In connection with the transaction, SL Green will assume leasing responsibilities at the property and The Witkoff Group will continue to manage the building.

The investment expands SL Green's already significant presence in New York's Grand Central submarket, increasing its total inventory in Grand Central to approximately 5.4 million square feet. The building's high quality tenant roster includes such notable companies as Omnicom Group, Tribune Company, WPIX-TV, Verizon, and Value Line, as well as many established international organizations affiliated with the United Nations.

Marc Holliday, President of SL Green commented, "We are delighted to have the opportunity to make an investment in The News Building, a cornerstone property in the Grand Central marketplace. We expect to achieve an attractive current return on our investment while capitalizing on significant long-term appreciation of this strategically located, signature property."

Commenting on the transaction, Steven Witkoff, President and Chief Executive Officer of the Witkoff Group, stated "I am excited about our new affiliation with SL Green Realty Corp. as our partner in The News Building. We have a lot of respect for the SL Green Realty franchise and look forward to working together to further enhance the value and prestige of The News Building."

David Luski, Executive Vice President and Chief Operating Officer of DRA Advisors, added: "We are pleased to initiate a relationship with SL Green Realty. Venturing with quality operating partners, both publicly and privately held, has been integral to the success of our value-added investment strategies. We are hopeful of pursuing additional opportunities with SL Green Realty going forward."

SL Green Realty Corp. is a self-administered and self-managed real estate investment trust ("REIT") that primarily owns, manages, leases, acquires and repositions 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 forward-looking information in this release include the strength of the commercial office and industrial real estate markets in New York, competitive market conditions, unanticipated administrative costs, timing of leasing income, general and local economic growth, interest rates and capital market conditions. For further information, please refer to the Company's filings with the Securities and Exchange Commission.