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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 11, 1998
SL GREEN REALTY CORP.
(Exact name of Registrant as specified in its Charter)
Maryland
(State of Incorporation)
1-13199 13-3956775
(Commission File Number) (IRS Employer Id. Number)
70 West 36th Street 10018
New York, New York (Zip Code)
(Address of principal executive offices)
(212) 594-2700
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On November 11, 1998, SL Green Realty Corp. announced, in a press
release filed herewith, that it had entered into an agreement to purchase an
interest in 555 West 57th Street, the BMW Building.
ITEM 7. FINANCIAL STaTEMENTS AND EXHIBITS
(a) Exhibits
99.1 Press release dated November 11, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SL GREEN REALTY CORP.
By: /s/ Ann Isley
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Ann Iseley
Chief Financial Officer
Date: November 18, 1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SL GREEN REALTY CORP.
EXHIBITS
TO CURRENT REPORT ON
FORM 8-K DATED November 2, 1998
Commission File Number 1-13199
Exhibit Index
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Exhibit
Number Description
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99.1 (i) Press release dated November 11, 1998.
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
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Stephen Green, Chairman & CEO General Info: Paula Schwartz & Michael Lawson
David Nettina, President & COO Analyst Info: Pamela King
(212) 594-2700 Media Info: Judith Sylk-Siegel
(212) 661-8030
FOR IMMEDIATE RELEASE
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November 11, 1998
SL GREEN REALTY CORP. SIGNS AGREEMENT TO PURCHASE
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555 WEST 57TH STREET
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UNDERSCORES CONTINUED COMMITMENT TO STRONG MANHATTAN PERFORMERS
NEW YORK, NY, NOVEMBER 11, 1998 - SL Green Realty Corp. (NYSE:SLG) announced
today that it has signed a contract with an affiliate of Blackacre Capital
Management LLC to purchase Blackacre's 65% controlling interest for $66.7
million in 555 West 57th Street, a 20-story Midtown Manhattan property known
as the BMW Building.
Located on the easterly block front of 11th Avenue between West 57th and West
58th Streets in Manhattan's Midtown West submarket, the BMW Building offers
950,000 square feet of rentable space, including three subgrade floors, two of
which comprise a 190-car garage. The property is currently 95% leased and is
expected to be approximately 100% leased by closing.
According to Stephen L. Green, Chairman and Chief Executive Officer of SL
Green, "The BMW Building acquisition will provide a cash return of 10% on
total project costs which the Company expects to increase to 11.3% after
lease-up of the one remaining vacant floor. This lease is expected to be
signed prior to closing."
Mr. Green, an 18-year veteran of the Manhattan office building market, said
that he believes the BMW Building is well-positioned to benefit from the
city's westward development along the 57th Street Corridor with entertainment,
retail and office uses. However, he noted that the agreement comes amidst much
speculation about Manhattan real estate, with many predicting a drop in
prices, a result of tightening credit. Mr. Green stressed that handicapping
the direction of prices is a difficult science, and that ultimately, buying
decisions must be based on solid real estate fundamentals. "What we know is
that the 555 West 57th Street property immediately delivers an NOI return that
is right in line with SL Green's growth story and current business plan. The
Company will remain committed to properties that can deliver that kind of
ongoing performance."
Marc Holliday, Chief Investment Officer of SL Green, pointed out that, "We are
buying double-digit returns with leases in place primarily from credit
tenants. Historically, to get that type of return we would have to buy
substantial vacancy and take on leasing risk."
Mr. Holliday acknowledged that financing for many real estate owners has dried
up, or is available on disadvantageous terms. "One of the key points of the
BMW Building acquisition is that, even in an uncertain property financing
market, it comes with assumable underlying first mortgage financing on
attractive terms." He added that SLG has one of the lowest debt-to-market cap
ratios of any major office REIT in the country and has the capital to invest
for the "right" transactions.
BMW, the primary tenant of 555 West 57th Street, occupies 19% of the
20-floor-mid-town property's floor space, or 183,000 square feet. Originally
built in 1971 as the headquarters building for Ford Motor Company, the
building is now home to BMW's U.S. flagship offices, service center and
showroom. The showroom includes a three-story sloping glass atrium overlooking
57th Street and 11th Avenue. BMW's investment in its space is estimated to be
in excess of $10 million.
Other tenants include: CBS, Inc., The City University of New York, St. Luke's
Roosevelt Hospital, the Greater HY Hospital and Ticketmaster. Many tenants
have signed long-term leases as evidenced by the fact that 65% of existing
leases expire beyond 2008.
Subsequent to the 555 West 57th Street acquisition, SL Green's portfolio
will consist of 19 properties, encompassing approximately 7.2 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.
# # #
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 www.slgreen.com
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.