Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 10-Q

 


 

þ         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2011

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             .

 

Commission File Number: 1-13199


 

SL GREEN REALTY CORP.

(Exact name of registrant as specified in its charter)

 


 

Maryland

 

13-3956775

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

420 Lexington Avenue, New York, New York 10170

(Address of principal executive offices) (Zip Code)

 

(212) 594-2700

(Registrant’s telephone number, including area code)

 


 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES þ     NO o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES þ    NO  o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer þ

Accelerated filer o

Non-accelerated filer o
(Do not check if a
smaller reporting company)

Smaller Reporting Company o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES   o    NO þ

 

The number of shares outstanding of the registrant’s common stock, $0.01 par value, was 82,889,693 as of April 30, 2011.

 



Table of Contents

 

SL GREEN REALTY CORP.

 

INDEX

 

 

PART I.    FINANCIAL INFORMATION

 

 

 

 

 

ITEM 1.    FINANCIAL STATEMENTS

PAGE

 

 

Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010

3

 

 

Consolidated Statements of Income for the three months ended March 31, 2011 and 2010 (unaudited)

4

 

 

 

 

Consolidated Statement of Equity for the three months ended March 31, 2011 (unaudited)

5

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (unaudited)

6

 

 

Notes to Consolidated Financial Statements (unaudited)

7

 

 

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

36

 

 

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

50

 

 

ITEM 4.    CONTROLS AND PROCEDURES

50

 

 

PART II.   OTHER INFORMATION

51

 

 

ITEM 1.    LEGAL PROCEEDINGS

51

 

 

ITEM 1A. RISK FACTORS

51

 

 

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

51

 

 

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

51

 

 

ITEM 4.    (REMOVED AND RESERVED)

51

 

 

ITEM 5.    OTHER INFORMATION

51

 

 

ITEM 6.    EXHIBITS

52

 

 

SIGNATURES

53

 

2



Table of Contents

 

PART I.  FINANCIAL INFORMATION

ITEM 1.  Financial Statements

SL Green Realty Corp.

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

 

 

March 31,

2011

 

December 31,

2010

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Commercial real estate properties, at cost:

 

 

 

 

 

Land and land interests

 

$

1,974,994

 

$

1,750,220

 

Building and improvements

 

5,754,193

 

5,840,701

 

Building leasehold and improvements

 

1,520,150

 

1,286,935

 

Property under capital lease

 

12,208

 

12,208

 

 

 

9,261,545

 

8,890,064

 

Less: accumulated depreciation

 

(953,993

)

(916,293

)

 

 

8,307,552

 

7,973,771

 

Assets held for sale

 

104,808

 

---

 

Cash and cash equivalents

 

234,009

 

332,830

 

Restricted cash

 

107,835

 

137,673

 

Investment in marketable securities

 

64,440

 

34,052

 

Tenant and other receivables, net of allowance of $13,807 and $12,981 in 2011 and 2010, respectively

 

26,314

 

27,054

 

Related party receivables

 

3,653

 

6,295

 

Deferred rents receivable, net of allowance of $29,832 and $30,834 in 2011 and 2010, respectively

 

223,552

 

201,317

 

Debt and preferred equity investments, net of discount of $19,866 and $42,937 and allowance of $58,211 and $61,361 in 2011 and 2010, respectively

 

579,287

 

963,772

 

Investments in unconsolidated joint ventures

 

916,600

 

631,570

 

Deferred costs, net

 

180,712

 

172,517

 

Other assets

 

693,604

 

 

819,443

 

Total assets

 

$

11,442,366

 

$

11,300,294

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Mortgages and other loans payable

 

$

3,280,084

 

$

3,400,468

 

Revolving credit facility

 

500,000

 

650,000

 

Senior unsecured notes

 

1,018,674

 

1,100,545

 

Accrued interest payable and other liabilities

 

150,895

 

38,149

 

Accounts payable and accrued expenses

 

123,728

 

133,389

 

Deferred revenue/gains

 

294,634

 

307,678

 

Capitalized lease obligation

 

17,060

 

17,044

 

Deferred land leases payable

 

18,318

 

18,267

 

Dividend and distributions payable

 

14,563

 

14,182

 

Security deposits

 

43,196

 

38,690

 

Liabilities related to assets held for sale

 

121,635

 

---

 

Junior subordinate deferrable interest debentures held by trusts that issued trust preferred securities

 

100,000

 

100,000

 

Total liabilities

 

5,682,787

 

5,818,412

 

 

 

 

 

 

 

Commitments and contingencies

 

---

 

---

 

 

 

 

 

 

 

Noncontrolling interest in operating partnership

 

143,756

 

84,338

 

 

 

 

 

 

 

Equity

 

 

 

 

 

SL Green stockholders’ equity:

 

 

 

 

 

Series C preferred stock, $0.01 par value, $25.00 liquidation preference, 11,700 issued and outstanding at March 31, 2011 and December 31, 2010, respectively

 

274,022

 

274,022

 

Series D preferred stock, $0.01 par value, $25.00 liquidation preference, 4,000 issued and outstanding at March 31, 2011 and December 31, 2010, respectively

 

96,321

 

96,321

 

Common stock, $0.01 par value 160,000 shares authorized and 84,336 and 81,675 issued and outstanding at March 31, 2011 and December 31, 2010, respectively (including 3,411 and 3,369 shares at March 31, 2011 and December 31, 2010, held in Treasury, respectively)

 

844

 

817

 

Additional paid-in-capital

 

3,836,453

 

3,660,842

 

Treasury stock at cost

 

(306,170

)

(303,222

)

Accumulated other comprehensive loss

 

(13,011

)

(22,659

)

Retained earnings

 

1,207,504

 

1,172,963

 

Total SL Green stockholders’ equity

 

5,095,963

 

4,879,084

 

Noncontrolling interests in other partnerships

 

519,860

 

518,460

 

Total equity

 

5,615,823

 

5,397,544

 

Total liabilities and equity

 

$

11,442,366

 

$

11,300,294

 

The accompanying notes are an integral part of these financial statements.

 

3



Table of Contents

 

SL Green Realty Corp.

Consolidated Statements of Income

(Unaudited, and amounts in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2011

 

2010

 

Revenues

 

 

 

 

 

Rental revenue, net

$

228,970

$

192,210

 

Escalation and reimbursement

 

30,275

 

30,093

 

Investment and preferred equity income

 

67,828

 

20,379

 

Other income

 

7,249

 

8,199

 

Total revenues

 

334,322

 

250,881

 

Expenses

 

 

 

 

 

Operating expenses (including approximately $3,115 (2011) and $3,104 (2010) paid to affiliates)

 

60,300

 

56,786

 

Real estate taxes

 

40,067

 

36,972

 

Ground rent

 

7,834

 

7,821

 

Interest expense, net of interest income

 

65,073

 

56,787

 

Amortization of deferred financing costs

 

3,806

 

2,295

 

Depreciation and amortization

 

63,497

 

55,525

 

Loan loss and other investment reserves

 

---

 

6,000

 

Transaction related costs

 

2,434

 

1,058

 

Marketing, general and administrative

 

20,021

 

18,398

 

Total expenses

 

263,032

 

241,642

 

Income from continuing operations before equity in net income of unconsolidated joint ventures, noncontrolling interests and discontinued operations

 

71,290

 

9,239

 

Equity in net income from unconsolidated joint ventures

 

8,206

 

15,376

 

Purchase price fair value adjustment

 

13,788

 

---

 

Loss on investment in marketable securities

 

(127

)

(285

)

Loss on early extinguishment of debt

 

---

 

(113

)

Income from continuing operations

 

93,157

 

24,217

 

Net income from discontinued operations

 

737

 

1,917

 

Net income

 

93,894

 

26,134

 

Net income attributable to noncontrolling interests in the operating partnership

 

(1,852

)

(291

)

Net income attributable to noncontrolling interests in other partnerships

 

(3,610

)

(3,648

)

Net income attributable to SL Green

 

88,432

 

22,195

 

Preferred stock dividends

 

(7,545

)

(7,116

)

Net income attributable to SL Green common stockholders

$

80,887

$

15,079

 

 

 

 

 

 

 

Amounts attributable to SL Green common stockholders:

 

 

 

 

 

Income from continuing operations

$

66,684

$

13,237

 

Net income from discontinued operations

 

721

 

1,842

 

Purchase price fair value adjustment

 

13,482

 

---

 

Net income

$

80,887

$

15,079

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

Net income from continuing operations before discontinued operations

$

1.01

$

0.17

 

Net income from discontinued operations

 

0.01

 

0.02

 

Net income attributable to SL Green common stockholders

$

1.02

$

0.19

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

Net income from continuing operations before discontinued operations

$

1.00

$

0.17

 

Net income from discontinued operations

 

0.01

 

0.02

 

Net income attributable to SL Green common stockholders

$

1.01

$

0.19

 

 

 

 

 

 

 

Dividends per share

$

0.10

$

0.10

 

Basic weighted average common shares outstanding

 

79,401

 

77,823

 

Diluted weighted average common shares and common share equivalents outstanding

 

81,643

 

79,760

 

The accompanying notes are an integral part of these financial statements.

 

4



Table of Contents

 

SL Green Realty Corp.

Consolidated Statement of Equity

(Unaudited, and amounts in thousands, except per share data)

 

 

 

 

SL Green Realty Corp. Stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series C
Preferred
Stock

 

Series D
Preferred
Stock

 

Shares

 

Par
Value

 

Additional
Paid-
In-Capital

 

Treasury
Stock

 

Accumulated
 Other
Comprehensive
Income (Loss)

 

Retained
Earnings

 

Noncontrolling
Interests

 

Total

 

Comprehensive
Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2010

 

$

274,022

 

$

96,321

 

78,307

 

$

817

 

$

3,660,842

 

$

(303,222

)

$

(22,659

)

$

1,172,963

 

$

518,460

 

$

5,397,544

 

 

 

Comprehensive Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88,432

 

3,610

 

92,042

 

$

92,042

 

Net unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

1,018

 

 

 

 

 

1,018

 

1,018

 

SL Green’s share of joint venture net unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

2,550

 

 

 

 

 

2,550

 

2,550

 

Unrealized gains on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

6,080

 

 

 

 

 

6,080

 

6,080

 

Preferred dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,545

)

 

 

(7,545

 )

 

 

Redemption of units and DRIP proceeds

 

 

 

 

 

11

 

-

 

725

 

 

 

 

 

 

 

 

 

725

 

 

 

Reallocation of noncontrolling interest in the operating partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,209

)

 

 

(38,209

 )

 

 

Deferred compensation plan & stock award, net

 

 

 

 

 

259

 

3

 

471

 

(2,948

)

 

 

 

 

 

 

(2,474

 )

 

 

Amortization of deferred compensation plan

 

 

 

 

 

 

 

 

 

8,923

 

 

 

 

 

 

 

 

 

8,923

 

 

 

Proceeds from issuance of common stock

 

 

 

 

 

2,253

 

23

 

161,691

 

 

 

 

 

 

 

 

 

161,714

 

 

 

Proceeds from stock options exercised

 

 

 

 

 

95

 

1

 

3,801

 

 

 

 

 

 

 

 

 

3,802

 

 

 

Cash distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,210

)

(2,210

 )

 

 

Cash distribution declared ($0.10 per common share, none of which represented a return of capital for federal income tax purposes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,137

)

 

 

(8,137

 )

 

 

Balance at March 31, 2011

 

$

274,022

 

$

96,321

 

80,925

 

$

844

 

$

3,836,453

 

$

(306,170

)

$

(13,011

)

$

1,207,504

 

$

519,860

 

$

5,615,823

 

$

101,690

 

 

The accompanying notes are an integral part of these financial statements.

 

5



Table of Contents

 

SL Green Realty Corp.

Consolidated Statements of Cash Flows

(Unaudited, and amounts in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2011

 

2010

 

Operating Activities

 

 

 

 

 

Net income

$ 

93,894

$ 

26,134

 

Adjustment to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

67,979

 

59,568

 

Equity in net income from unconsolidated joint ventures

 

(8,206

)

(15,376

)

Distributions of cumulative earnings from unconsolidated joint ventures

 

2,915

 

10,328

 

Purchase price fair value adjustment

 

(13,788

)

---

 

Gain on sale of debt securities

 

(19,840

)

---

 

Loan loss and other investment reserves

 

---

 

6,000

 

Loss on investments in marketable securities

 

127

 

285

 

Loss on early extinguishment of debt

 

---

 

113

 

Deferred rents receivable

 

(24,367

)

(10,754

)

Other non-cash adjustments

 

(1,823

)

(10,228

)

Changes in operating assets and liabilities:

 

 

 

 

 

Restricted cash – operations

 

(3,131

)

(10,082

)

Tenant and other receivables

 

1,025

 

413

 

Related party receivables

 

2,449

 

5,352

 

Deferred lease costs

 

(7,651

)

(7,934

)

Other assets

 

(7,014

)

(1,134

)

Accounts payable, accrued expenses and other liabilities

 

(5,833

)

12,293

 

Deferred revenue and land leases payable

 

3,073

 

1,704

 

Net cash provided by operating activities

 

79,809

 

66,682

 

Investing Activities

 

 

 

 

 

Acquisitions of real estate property

 

(10,000

)

---

 

Additions to land, buildings and improvements

 

(21,396

)

(13,857

)

Escrowed cash – capital improvements/acquisition deposits

 

45,975

 

(12,006

)

Investments in unconsolidated joint ventures

 

(31,299

)

(1,084

)

Distributions in excess of cumulative earnings from unconsolidated joint ventures

 

95,704

 

8,155

 

Other investments

 

(148,264

)

(1,131

)

Debt and preferred equity and other investments, net of repayments/participations

 

100,279

 

(40,320

)

Net cash provided by (used in) investing activities

 

30,999

 

(60,243

)

Financing Activities

 

 

 

 

 

Proceeds from mortgages and other loans payable

 

40,000

 

---

 

Repayments of mortgages and other loans payable

 

(148,761

)

(12,079

)

Proceeds from revolving credit facility and senior unsecured notes

 

458,550

 

250,000

 

Repayments of revolving credit facility and senior unsecured notes

 

(693,373

)

(495,465

)

Proceeds from stock options exercised and DRIP issuance

 

3,802

 

12,164

 

Net proceeds from sale of common stock

 

161,714

 

---

 

Net proceeds from sale of preferred stock

 

---

 

122,168

 

Distributions to noncontrolling interests in other partnerships

 

(2,210

)

(3,307

)

Redemption of noncontrolling interest in operating partnership

 

---

 

(11,096

)

Distributions to noncontrolling interests in operating partnership

 

(228

)

(141

)

Dividends paid on common and preferred stock

 

(15,682

)

(12,835

)

Deferred loan costs and capitalized lease obligation

 

(13,441

)

(31,909

)

Net cash used in financing activities

 

(209,629

)

(182,500

)

Net decrease in cash and cash equivalents

 

(98,821

)

(176,061

)

Cash and cash equivalents at beginning of period

 

332,830

 

343,715

 

Cash and cash equivalents at end of period

$ 

234,009

$ 

167,654

 

 

 

The accompanying notes are an integral part of these financial statements.

 

6



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

1.  Organization and Basis of Presentation

 

SL Green Realty Corp., also referred to as the Company or SL Green, a Maryland corporation, and SL Green Operating Partnership, L.P., or the operating partnership, a Delaware limited partnership, were formed in June 1997 for the purpose of combining the commercial real estate business of S.L. Green Properties, Inc. and its affiliated partnerships and entities.  The operating partnership received a contribution of interest in the real estate properties, as well as 95% of the economic interest in the management, leasing and construction companies which are referred to as the Service Corporation, a consolidated variable interest entity.  All of the management, leasing and construction services with respect to the properties wholly-owned by us are conducted through SL Green Management LLC which is 100% owned by our operating partnership.  The Company has qualified, and expects to qualify in the current fiscal year, as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, and operates as a self-administered, self-managed REIT.  A REIT is a legal entity that holds real estate interests and, through payments of dividends to stockholders, is permitted to reduce or avoid the payment of Federal income taxes at the corporate level.  Unless the context requires otherwise, all references to the “Company,” “we,” “our” and “us” means the Company and all entities owned or controlled by the Company, including the operating partnership.

 

Substantially all of our assets are held by, and our operations are conducted through, the operating partnership.  The Company is the sole managing general partner of the operating partnership.  As of March 31, 2011, noncontrolling investors held, in the aggregate, a 2.3% limited partnership interest in the operating partnership.  We refer to this as the noncontrolling interests in the operating partnership.  See Note 13.

 

Reckson Operating Partnership, L.P., or ROP, is a subsidiary of our operating partnership.

 

As of March 31, 2011, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan, a borough of New York City, or Manhattan.  Our investments in the New York Metropolitan area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:

 

Location

 

Ownership

 

Number of
Properties

 

Square Feet

 

Weighted Average
Occupancy
(1)

 

Manhattan

 

Consolidated properties

 

23

 

15,601,945

 

92.0

%

 

 

Unconsolidated properties

 

7

 

6,722,515

 

96.4

%

 

 

 

 

 

 

 

 

 

 

Suburban

 

Consolidated properties

 

25

 

3,863,000

 

80.7

%

 

 

Unconsolidated properties

 

6

 

2,941,700

 

93.7

%

 

 

 

 

61

 

29,129,160

 

91.7

%

 


(1)       The weighted average occupancy represents the total leased square feet divided by total available rentable square feet.

 

We also owned investments in nine stand-alone retail properties encompassing approximately 334,782 square feet, six development properties encompassing approximately 1,277,521 square feet and three land interests as of March 31, 2011.  In addition, we manage four office properties owned by third parties and affiliated companies encompassing approximately 1.3 million rentable square feet.

 

Partnership Agreement

In accordance with the partnership agreement of the operating partnership, or the operating partnership agreement, we allocate all distributions and profits and losses in proportion to the percentage ownership interests of the respective partners.  As the managing general partner of the operating partnership, we are required to take such reasonable efforts, as determined by us in our sole discretion, to cause the operating partnership to distribute sufficient amounts to enable the payment of sufficient dividends by us to avoid any Federal income or excise tax at the Company level. Under the operating partnership agreement, each limited partner has the right to redeem units of limited partnership interests for cash, or if we so elect, shares of our common stock on a one-for-one basis.

 

Basis of Quarterly Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.  The 2011 operating results for the period presented are not necessarily indicative of the

 

7



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

results that may be expected for the year ending December 31, 2011.  These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2010.

 

The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

 

2.  Significant Accounting Policies

 

Principles of Consolidation

The consolidated financial statements include our accounts and those of our subsidiaries, which are wholly-owned or controlled by us. Entities which we do not control through our voting interest and entities which are variable interest entities, but where we are not the primary beneficiary, are accounted for under the equity method or as debt and preferred equity investments.  See Notes 5 and 6.  All significant intercompany balances and transactions have been eliminated.

 

The FASB amended the guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

 

A noncontrolling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent.  Noncontrolling interests are required to be presented as a separate component of equity in the consolidated balance sheet and modifies the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and noncontrolling interests.

 

We assess the accounting treatment for each joint venture and debt and preferred equity investment.  This assessment includes a review of each joint venture or partnership limited liability company agreement to determine which party has what rights and whether those rights are protective or participating.  For all VIE’s, we review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance.  In situations where we or our partner approves, among other things, the annual budget, receives a detailed monthly reporting package from us, meets on a quarterly basis to review the results of the joint venture, reviews and approves the joint venture’s tax return before filing, and approves all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights that result in shared power of the activities that most significantly impact the performance of our joint venture.  Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

 

Investment in Commercial Real Estate Properties

On a periodic basis, we assess whether there are any indicators that the value of our real estate properties may be impaired or that its carrying value may not be recoverable.  A property’s value is considered impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges for consolidated properties) to be generated by the property are less than the carrying value of the property.  To the extent impairment has occurred and is considered to be other than temporary, the loss will be measured as the excess of the carrying amount of the property over the calculated fair value of the property.  In addition, we assess our investments in unconsolidated joint ventures for recoverability, and if it is determined that a loss in value of the investment is other than temporary, we write down the investment to its fair value.  We evaluate our equity investments for impairment based on the joint venture’s projected discounted cash flows. We do not believe that the value of any of our consolidated properties was impaired at March 31, 2011 or December 31, 2010, respectively.

 

We allocate the purchase price of real estate to land and building and, if determined to be material, intangibles, such as the value of above-, below- and at-market leases and origination costs associated with the in-place leases.  We depreciate the amount allocated to building and other intangible assets over their estimated useful lives, which generally range from three to 40 years and from one to 14 years, respectively.  The values of the above- and below-market leases are amortized and recorded as either an increase (in the case of below-market leases) or a decrease (in the case of above-market leases) to rental income over the remaining term of the associated lease, which generally range from one to 14 years.  The value associated with in-place leases are amortized over the expected term of the associated lease, which generally range from one to 14 years.  If a tenant vacates its space prior to the contractual termination of the

 

8



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off.  The tenant improvements and origination costs are amortized as an expense over the remaining life of the lease (or charged against earnings if the lease is terminated prior to its contractual expiration date).  We assess fair value of the leases based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.  Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions that may affect the property.

 

We recognized an increase of approximately $7.2 million and $6.5 million in rental revenue for the three months ended March 31, 2011 and 2010, respectively, for the amortization of aggregate below-market leases in excess of above-market leases and a reduction in lease origination costs, resulting from the allocation of the purchase price of the applicable properties.  We recognized a reduction in interest expense for the amortization of the above-market rate mortgages assumed of approximately $1.4 million and $0.3 million for the three months ended March 31, 2011 and 2010, respectively.

 

The following summarizes our identified intangible assets (acquired above-market leases and in-place leases) and intangible liabilities (acquired below-market leases) (amounts in thousands):

 

 

 

March 31,

2011

 

 

December 31,

2010

 

Identified intangible assets (included in other assets):

 

 

 

 

 

 

Gross amount

540,330

 

758,300

 

Accumulated amortization

 

(145,198

)

 

(133,737

)

Net

395,132

 

624,563

 

 

 

 

 

 

 

 

Identified intangible liabilities (included in deferred revenue):

 

 

 

 

 

 

Gross amount

508,611

 

508,339

 

Accumulated amortization

 

(236,800

)

 

(220,417

)

Net

271,811

 

287,922

 

 

Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within level three of the hierarchy).

 

We determined the fair value of our current investments in marketable securities using level one, level two and level three inputs. Additionally, we determined the valuation allowance for loan losses based on level three inputs. See “Note 5—Debt and Preferred Equity Investments.”

 

The estimated fair values of tangible and intangible assets and liabilities recorded in connection with business combinations are based on level three inputs. We estimate fair values based on cash flow projections utilizing appropriate discount and/or capitalization rates and available market information.

 

We determine impairment in real estate investments and debt and preferred equity investments, including intangibles, utilizing cash flow projections that apply estimated revenue and expense growth rates, discount rates and capitalization rates, which are classified as level three inputs.

 

We use the following methods and assumptions in estimating fair value disclosures for financial instruments.

 

·                  Cash and cash equivalents:  The carrying amount of unrestricted cash and cash equivalents reported in our Consolidated Balance Sheets approximates fair value due to the short maturity of these instruments.

 

·                  Debt and Preferred Equity Investments:  The fair value of debt and preferred equity investments is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings. See “—Debt and Preferred Equity Investments” above regarding valuation allowances for loan losses.

 

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Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

·                  Mortgage and other loans payable and other debt:  The fair value of borrowings is estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made by us.

 

The methodologies used for valuing financial instruments have been categorized into three broad levels as follows:

 

Level 1 – Quoted prices in active markets for identical instruments.

 

Level 2 – Valuations based principally on other observable market parameters, including

·         Quoted prices in active markets for similar instruments,

·         Quoted prices in less active or inactive markets for identical or similar instruments,

·                            Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and

·         Market corroborated inputs (derived principally from or corroborated by observable market data).

 

Level 3 – Valuations based significantly on unobservable inputs.

·                            Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations.

·                            Valuations based on internal models with significant unobservable inputs.

 

These levels form a hierarchy. We follow this hierarchy for our financial instruments measured at fair value on a recurring and nonrecurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement.

 

Investment in Marketable Securities

We invest in marketable securities. At the time of purchase, we are required to designate a security as held-to-maturity, available-for-sale, or trading depending on ability and intent. We do not have any securities designated as held-to-maturity or trading at this time. Securities available-for-sale are reported at fair value pursuant to ASC 820-10, with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss.  Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. Included in accumulated other comprehensive loss at March 31, 2011 is approximately $16.2 million in net unrealized gains related to marketable securities.

 

The basis on which the cost of bonds and marketable securities sold is determined based on the specific identification method.

 

At March 31, 2011 and December 31, 2010, we held the following marketable securities (in thousands):

 

 

 

March 31,

 

 

December 31,

 

 

2011

 

 

2010

Level 1 – Equity marketable securities

22,681

 

12,357

Level 2 – Commercial mortgage-backed securities

 

18,571

 

 

17,445

Level 3 – Rake bonds

 

23,188

 

 

4,250

Total marketable securities available-for-sale

64,440

 

34,052

 

The cost basis of the Level 3 securities was $26.8 million at March 31, 2011 and $4.3 million at December 31, 2010. There were no sales of Level 3 securities during the three months ended March 31, 2011.  The Level 3 securities mature at various times through 2041.

 

Revenue Recognition

Interest income on debt and preferred equity investments is recognized over the life of the investment using the effective interest method and recognized on the accrual basis.  Fees received in connection with loan commitments are deferred until the loan is funded and are then recognized over the term of the loan as an adjustment to yield.  Anticipated exit fees, whose collection is expected, are also recognized over the term of the loan as an adjustment to yield.  Fees on commitments that expire unused are recognized at expiration.

 

Income recognition is generally suspended for debt and preferred equity investments at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of income and principal becomes doubtful.  Income recognition is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. Interest is recorded as income on impaired loans only to the extent cash is received. Several of the debt and preferred equity investments provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible, based on the

 

10



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

underlying collateral and operations of the borrower. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt.

 

If we purchase a debt or preferred equity investment at a discount, intend to hold it until maturity and expect to recover the full value of the investment, we accrete the discount as an adjustment to yield over the term of the investment. If we purchase a debt or preferred equity investment at a discount with the intention of foreclosing on the collateral, we do not accrete the discount.

 

Reserve for Possible Credit Losses

The expense for possible credit losses in connection with debt and preferred equity investments is the charge to earnings to increase the allowance for possible credit losses to the level that we estimate to be adequate, based on Level 3 data, considering delinquencies, loss experience and collateral quality.  Other factors considered relate to geographic trends and product diversification, the size of the portfolio and current economic conditions.  Based upon these factors, we establish the provision for possible credit losses on each individual investment.  When it is probable that we will be unable to collect all amounts contractually due, the investment is considered impaired.

 

Where impairment is indicated on an investment that is held to maturity, a valuation allowance is measured based upon the excess of the recorded investment amount over the net fair value of the collateral.  Any deficiency between the carrying amount of an asset and the calculated value of the collateral is charged to expense.  We recorded no loan loss reserves and $6.0 million in loan loss reserves and charge offs during the three months ended March 31, 2011 and 2010, respectively, on investments being held to maturity, and none and $1.0 million against our held for sale investment during the three months ended March 31, 2011 and 2010, respectively.  We also recorded approximately $3.2 million in recoveries during the three months ended March 31, 2011 in connection with the sale of an investment. This is included in investment and preferred equity income in the accompanying statement of income.

 

Debt and preferred equity investments held for sale are carried at the lower of cost or fair market value using available market information obtained through consultation with dealers or other originators of such investments as well as discounted cash flow models based on Level 3 data pursuant to ASC 820-10. As circumstances change, management may conclude not to sell an investment designated as held for sale.  In such situations, the investment will be reclassified at its net carrying value to debt and preferred equity investments held to maturity.  For these reclassified investments, the difference between the current carrying value and the expected cash to be collected at maturity will be accreted into income over the remaining term of the investment.

 

Income Taxes

We are taxed as a REIT under Section 856(c) of the Code.  As a REIT, we generally are not subject to Federal income tax.  To maintain our qualification as a REIT, we must distribute at least 90% of our REIT taxable income to our stockholders and meet certain other requirements.  If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income tax on our taxable income at regular corporate rates.  We may also be subject to certain state, local and franchise taxes.  Under certain circumstances, Federal income and excise taxes may be due on our undistributed taxable income.

 

Pursuant to amendments to the Code that became effective January 1, 2001, we have elected, and may in the future, elect to treat certain of our existing or newly created corporate subsidiaries as taxable REIT subsidiaries, or a TRS.  In general, a TRS of ours may perform non-customary services for our tenants, hold assets that we cannot hold directly and generally may engage in any real estate or non-real estate related business.  Our TRSs’ generate income, resulting in Federal income tax liability for these entities.  Our TRSs’ recorded no Federal, state and local tax provision during each of the three months ended March 31, 2011 and 2010, respectively, and made estimated tax payments of $0.1 million and $0.3 million during the three months ended March 31, 2011 and 2010, respectively.

 

Stock-Based Employee Compensation Plans

We have a stock-based employee compensation plan, described more fully in Note 12.

 

The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable.  In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.  Because our plan has characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimate, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our employee stock options.

 

Compensation cost for stock options, if any, is recognized ratably over the vesting period of the award.  Our policy is to grant options with an exercise price equal to the quoted closing market price of our stock on the grant date.  Awards of stock or restricted stock are

 

11



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

expensed as compensation over the benefit period based on the fair value of the stock on the grant date.

 

For share-based awards with a performance or market measure, we recognize compensation cost over the requisite service period,  using the accelerated attribution expense method. The requisite service period begins on the date the Compensation Committee authorizes the award and adopts any relevant performance measures. For programs with performance or market measures, the total estimated compensation cost is based on the fair value of the award at the applicable reporting date estimated using a binomial model. For share-based awards for which there is no pre-established performance measure, we recognize compensation cost over the service vesting period, which represents the requisite service period, on a straight-line basis. In accordance with the provisions of our share-based incentive compensation plans, we accept the return of shares of Company common stock, at the current quoted market price, from certain key employee to satisfy minimum statutory tax-withholding requirements related to shares that vested during the period.

 

Earnings per Share

We present both basic and diluted earnings per share, or EPS.  Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Basic EPS includes participating securities, consisting of unvested restricted stock that receive nonforfeitable dividends similar to shares of common stock. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount.  This also includes units of limited partnership interest. The dilutive effect of the outstanding nonvested shares of common stock (“nonvested shares”) and restricted stock units (“RSUs”) that have not yet been granted but are contingently issuable under the share-based compensation programs is reflected in the weighted average diluted shares calculation by application of the treasury stock method at the beginning of the quarterly period in which all necessary conditions have been satisfied. The dilutive effect of stock options are reflected in the weighted average diluted outstanding shares calculation by application of the treasury stock method. There is no dilutive effect for the exchangeable senior debentures as the conversion premium will be paid in cash.

 

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, debt and preferred equity investments and accounts receivable.  We place our cash investments in excess of insured amounts with high quality financial institutions.  The collateral securing our debt and preferred equity investments is primarily located in the New York Metropolitan area. See Note 5. We perform ongoing credit evaluations of our tenants and require certain tenants to provide security deposits or letters of credit.  Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space.  Although the properties in our real estate portfolio are primarily located in Manhattan, we also have properties located in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.  The tenants located in our buildings operate in various industries.  Other than one tenant who accounts for approximately 8.0% of our annualized rent, no other tenant in our portfolio accounted for more than 5.9% of our annualized rent, including our share of joint venture annualized rent at March 31, 2011. Approximately 7%, 6%, 7% and 6% of our annualized rent, including our share of joint venture annualized rent, was attributable to 1515 Broadway, 420 Lexington Avenue, 1185 Avenue of the Americas and One Madison Avenue, respectively, for the quarter ended March 31, 2011.  Two borrowers accounted for more than 10.0% of the revenue earned on debt and preferred equity investments during the three months ended March 31, 2011.

 

Reclassification

Certain prior year balances have been reclassified to conform to our current year presentation primarily in order to eliminate discontinued operations from income from continuing operations.

 

Accounting Standards Updates

 

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Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

In July 2010, the FASB issued updated guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses which will require a greater level of information disclosed about the credit quality of loans and allowance for loan losses, as well as additional information related to credit quality indicators, past due information, and information related to loans modified in trouble debt restructuring. The guidance related to disclosures of financing receivables as of the end of a reporting period is required to be adopted for interim and annual reporting periods ending on or after December 15, 2010. The financing receivables disclosures related to the activity that occurs during a reporting period are required to be adopted for interim and annual reporting periods beginning on or after December 15, 2010.  In January 2011, the FASB temporarily delayed the effective date of the disclosures about troubled debt restructurings to allow the FASB the time needed to complete its deliberations on what constitutes a troubled debt restructuring. The effective date of the new disclosures about troubled debt restructurings and the guidance for determining what constitutes a troubled debt restructuring will then be coordinated. Currently, the guidance is anticipated to be effective for interim and annual periods ending after June 15, 2011. Adoption of the remaining guidance resulted in additional disclosures in our consolidated financial statements.

 

In January 2010, the FASB issued updated guidance on fair value measurements and disclosures, which requires disclosure of details of significant asset or liability transfers in and out of Level 1 and Level 2 measurements within the fair value hierarchy and inclusion of gross purchases, sales, issuances, and settlements in the rollforward of assets and liabilities valued using Level 3 inputs within the fair value hierarchy.  The guidance also clarifies and expands existing disclosure requirements related to the disaggregation of fair value disclosures and inputs used in arriving at fair values for assets and liabilities using Level 2 and Level 3 inputs within the fair value hierarchy.  These disclosure requirements were effective for interim and annual reporting periods beginning after December 15, 2009. Adoption of this guidance on January 1, 2010, excluding the Level 3 rollforward, resulted in additional disclosures in our consolidated financial statements. The gross presentation of the Level 3 rollforward is required for interim and annual reporting periods beginning after December 15, 2010. Adoption of this guidance did not have a material impact on our consolidated financial statements.

 

In December 2010, the FASB issued guidance on the disclosure of supplementary pro forma information for business combinations. Effective for periods beginning after December 15, 2010, the guidance specifies that if a public entity enters into business combinations that are material on an individual or aggregate basis and presents comparative financial statements, the entity must present pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Adoption of this guidance did not have a material impact on our consolidated financial statements.

 

3.  Property Acquisitions

 

In January 2011, we purchased CIF’s 49.9% interest in 521 Fifth Avenue, thereby assuming full ownership of the building. The transaction values the consolidated interest at approximately $245.7 million. We assumed $140.0 million of mortgage financing in connection with this acquisition. We recognized a purchase price fair value adjustment of $13.8 million upon the closing of this transaction. See Note 9. We will finalize our allocation of the purchase price of the assets acquired and liabilities assumed in the second quarter of 2011.

 

In December 2010, we completed the acquisition of investments from Gramercy Capital Corp. (NYSE:GKK), or Gramercy. This included (1) the remaining 45% interest in the leased fee at 885 Third Avenue for approximately $39.3 million plus assumed mortgage debt of approximately $120.4 million, (2) the remaining 45% interest in the leased fee at 2 Herald Square for approximately $25.6 million plus assumed mortgage debt of approximately $86.1 million and, (3) the entire leased fee interest in 292 Madison Avenue for approximately $19.2 million plus assumed mortgage debt of approximately $59.1 million. These assets are all leased to third-party operators.

 

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Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

The following summarizes our allocation of the purchase price of the assets acquired and liabilities assumed upon the purchase of the abovementioned investments from Gramercy (in thousands):

 

Land

$  

501,021

 

Above market lease value

 

23,178

 

Acquired in-place leases

 

217,312

 

Assets acquired

 

741,511

 

 

 

 

 

Mortgage notes payable

 

540,805

 

Other liabilities, net of other assets

 

2,091

 

Liabilities assumed

 

542,896

 

 

 

198,615

 

Investments in unconsolidated joint ventures

 

(111,751

)

Net assets acquired

$  

86,864

 

 

In December 2010, we acquired two retail condominiums in Williamsburg, Brooklyn, for approximately $18.4 million. The retail condominiums are fully leased with rent commencement upon completion of the redevelopment work.

 

The following summarizes our allocation of the purchase price of the assets acquired in connection with the purchase of the abovementioned property (in thousands):

 

Land

$

6,200

 

Building

 

10,158

 

Acquired in-place leases

 

2,304

 

Assets acquired

 

18,662

 

Below market lease value

 

277

 

Liabilities assumed

 

277

 

Net assets acquired

$

18,385

 

 

4.  Property Dispositions and Assets Held for Sale

 

In March 2011, we entered into an agreement to sell our property located at 28 West 44th Street for $161.0 million. The property is approximately 359,000 square feet. This transaction closed during the second quarter of 2011.

 

At March 31, 2011, discontinued operations included the results of operations of real estate assets sold or held for sale prior to that date. This included 28 West 44th Street, which was held for sale as of March 31, 2011 and 19 West 44th Street, which was sold in September 2010.

 

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Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

The following table summarizes income from discontinued operations for the three months ended March 31, 2011 and 2010, respectively (in thousands).

 

 

 

Three
Months

Ended

 

Three
Months
Ended

 

 

 

March 31,

 

March 31,

 

 

 

2011

 

2010

 

Revenues

 

 

 

 

 

Rental revenue

$

3,591

$

6,376

 

Escalation and reimbursement revenues

 

654

 

1,375

 

Other income

 

4

 

2

 

Total revenues

 

4,249

 

7,753

 

Operating expense

 

1,147

 

1,982

 

Real estate taxes

 

846

 

1,415

 

Interest expense, net of interest income

 

695

 

693

 

Amortization of deferred financing costs

 

147

 

220

 

Transaction related costs

 

1

 

---

 

Depreciation and amortization

 

676

 

1,526

 

Total expenses

 

3,512

 

5,836

 

Income from discontinued operations

$

737

$

1,917

 

 

5.  Debt and Preferred Equity Investments

 

During the three months ended March 31, 2011 and 2010, our debt and preferred equity investments (net of discounts), including investments classified as held-for-sale, increased approximately $105.8 million and $84.7 million, respectively, due to originations, purchases, accretion of discounts and paid-in-kind interest.  We recorded approximately $490.3 million and $83.2 million in repayments, participations, sales, foreclosures and loan loss reserves during those periods, respectively, which offset the increases in debt and preferred equity investments.

 

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Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

As of March 31, 2011 and December 31, 2010, we held the following debt investments with an aggregate weighted average current yield of approximately 5.42% (in thousands):

 

Loan
Type

 

Senior
Financing

 

March 31, 2011
Principal
Outstanding

 

December 31,
2010
Principal
Outstanding

 

Initial
Maturity
Date

 

Other Loan(1)

$

15,000

$

3,500

$

3,500

 

September 2021

 

Mezzanine Loan(1)

 

205,000

 

62,606

 

60,407

 

February 2016

 

Mortgage/ Mezzanine Loan(1)

 

173,203

 

46,364

 

46,358

 

May 2016

 

Mezzanine Loan(1)

 

165,000

 

40,073

 

39,711

 

November 2016

 

Mezzanine Loan(1)(2)(3)(7)(8)

 

---

 

---

 

27,187

 

---

 

Mezzanine Loan(1) (8)

 

90,000

 

15,697

 

15,697

 

July 2017

 

Junior Participation(1)(4)(7)(8)

 

---

 

9,938

 

9,938

 

April 2008

 

Mezzanine Loan(1)(8) (9)

 

1,139,000

 

84,062

 

84,062

 

March 2017

 

Junior Participation(1)(7)

 

53,000

 

11,000

 

11,000

 

November 2011

 

Junior Participation(5)(7)

 

61,250

 

10,875

 

10,875

 

June 2012

 

Junior Participation(7)(8)

 

48,198

 

5,866

 

5,866

 

December 2010

 

Junior Participation(6)(7)

 

---

 

47,484

 

47,484

 

April 2011

 

Mortgage/ Mezzanine Loan(2)(10)

 

---

 

---

 

137,222

 

---

 

Junior Participation(12)

 

---

 

---

 

42,439

 

---

 

Junior Participation

 

70,800

 

9,200

 

9,200

 

October 2011

 

Mezzanine Loan(1)(13)

 

---

 

---

 

202,136

 

---

 

Mezzanine Loan(1)

 

75,000

 

15,000

 

15,000

 

July 2013

 

Mortgage(11)

 

---

 

86,339

 

86,339

 

June 2012

 

Mortgage

 

---

 

26,000

 

26,000

 

November 2011

 

Mezzanine Loan

 

796,693

 

13,536

 

13,536

 

August 2011

 

Mezzanine Loan(1)

 

166,625

 

38,776

 

38,892

 

February 2014

 

Mezzanine Loan(1)

 

177,000

 

17,940

 

---

 

May 2016

 

Loan loss reserve(7)

 

---

 

(37,311

)

(40,461

)

---

 

 

$

3,235,769

$

506,945

$

892,388

 

 

 

 

 

 


 

 

 

(1)

 

This is a fixed rate loan.

(2)

 

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

(3)

 

This loan was sold in February 2011. We realized $6.2 million of additional income upon the sale. This income is included in preferred equity and investment income.

(4)

 

This loan is in default. The lender has begun foreclosure proceedings. Another participant holds a $12.2 million pari-pasu interest in this loan.

(5)

 

This loan was extended for two years to June 2012.

(6)

 

Gramercy is the borrower under this loan. This loan consists of mortgage and mezzanine financing.

(7)

 

Loan loss reserves are specifically allocated to investments. Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct or that reserves will be adequate over time to protect against potential future losses.

(8)

 

This loan is on non-accrual status.

(9)

 

Interest is added to the principal balance for this accrual only loan.

(10)

 

Gramercy holds a pari passu interest in the mezzanine loan. This loan was repaid in March 2011.

(11)

 

We hold an 88% interest in the consolidated joint venture that acquired this loan. This investment is denominated in British Pounds.

(12)

 

This loan was repaid in January 2011. We realized $1.3 million of additional income upon the sale. This income is included in preferred equity and investment income.

(13)

 

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016 and carried a weighted average interest rate for the quarter of 1.16%.

 

16



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

Preferred Equity Investments

 

As of March 31, 2011 and December 31, 2010, we held the following preferred equity investments, with an aggregate weighted average current yield of approximately 9.45% (in thousands):

 

Type

 

Senior
Financing

 

March 31, 2011
Amount
Outstanding

 

December 31,
2010

Amount
Outstanding

 

Initial
Mandatory
Redemption

 

Preferred equity(1)(2)(5)(6)

$

206,121

$

46,870

$

45,912

 

February 2014

 

Preferred equity(3)(4)

 

981,941

 

46,372

 

46,372

 

August 2012

 

Loan loss reserve(3)

 

---

 

(20,900

)

(20,900

)

---

 

 

$

1,188,062

$

72,342

$

71,384

 

 

 

 


 

 

 

(1)

 

This is a fixed rate investment.

(2)

 

Gramercy holds a preferred equity investment on the underlying asset.

(3)

 

Loan loss reserves are specifically allocated to investments. Our reserves reflect management’s judgment of the probability and severity of losses based on Level 3 data. We cannot be certain that our judgment will prove to be correct and that reserves will be adequate over time to protect against potential future losses.

(4)

 

This investment is on non-accrual status.

(5)

 

The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.

(6)

 

This investment was classified as held for sale at June 30, 2009, but as held-to-maturity for all periods subsequent to June 30, 2009. The reserve previously taken against this loan is being accreted up to the face amount through the maturity date.

 

The following table is a rollforward of our total loan loss reserves at March 31, 2011 and December 31, 2010 (in thousands):

 

 

 

March 31,
2011

 

December 31,
2010

 

Balance at beginning of year

$

61,361

$

93,844

 

Expensed

 

---

 

24,418

 

Recoveries

 

(3,150

)

(3,662

)

Charge-offs

 

---

 

(53,239

)

Balance at end of period

$

58,211

$

61,361

 

 

At March 31, 2011 and December 31, 2010, all debt and preferred equity investments, other than as noted above, were performing in accordance with the terms of the loan agreements.

 

We have determined that we have one portfolio segment of financing receivables at March 31, 2011 and December 31, 2010 comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling approximately $204.7 million at March 31, 2011 and $78.7 million at December 31, 2010. The nonaccrual balance of financing receivables at March 31, 2011 and December 31, 2010 was $113.6 million and $140.8 million, respectively. The recorded investment for financing receivables past due 90 days at March 31, 2011 was $15.8 million associated with two financing receivables and at December 31, 2010 was $9.9 million associated with one financing receivable. All financing receivables are individually evaluated for impairment.

 

The following table presents impaired loans, including non-accrual loans, as of March 31, 2011 and December 31, 2010, respectively (in thousands):

 

 

 

March 31, 2011

 

December 31, 2010

 

 

 

Unpaid Principal
Balance

 

Recorded
Investment

 

Allowance
Allocated

 

Unpaid
Principal
Balance

 

Recorded
Investment

 

Allowance
Allocated

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$115,235

 

$99,759

 

$—

 

$103,678

 

$99,759

 

$—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

117,744

 

131,410

 

58,211

 

160,711

 

158,597

 

61,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$232,979

 

$231,169

 

$58,211

 

$264,389

 

$258,356

 

$61,361

 

 

17



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

The following table presents the average recorded investment in impaired loans, including non-accrual loans, as of March 31, 2011 and 2010, respectively, and the related investment and preferred equity income recognized during the three months ended March 31, 2011 and 2010, respectively (in thousands):

 

 

 

March 31,
2011

 

March 31,
2010

 

 

 

 

 

 

 

Average recorded investment in impaired loans

$

244,762

$

259,070

 

 

 

 

 

 

 

Investment and preferred equity income recognized

 

7,960

 

2,967

 

 

On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We assess credit quality indicators based on the underlying collateral.

 

6.              Investment in Unconsolidated Joint Ventures

 

We have investments in several real estate joint ventures with various partners, including The City Investment Fund, or CIF, SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, or SITQ, Canada Pension Plan Investment Board, or CPPIB, a fund managed by JP Morgan Investment Management, or JP Morgan, Prudential Real Estate Investors, or Prudential, Onyx Equities, or Onyx, The Witkoff Group, or Witkoff, Credit Suisse Securities (USA) LLC, or Credit Suisse, Jeff Sutton, or Sutton, Harel Insurance and Finance, or Harel, Louis Cappelli, or Cappelli, The Moinian Group, or Moinian, Vornado Realty Trust (NYSE: VNO), or Vornado, as well as private investors. As we do not control these joint ventures, we account for them under the equity method of accounting. We assess the accounting treatment for each joint venture on a stand-alone basis. This includes a review of each joint venture or partnership LLC agreement to determine which party has what rights and whether those rights are protective or participating. In situations where we or our partner are involved in some or all of the following: approving the annual budget, receiving a detailed monthly reporting package from us, meeting with us on a quarterly basis to review the results of the joint venture, reviewing and approving the joint venture’s tax return before filing, and approving all leases that cover more than a nominal amount of space relative to the total rentable space at each property, we do not consolidate the joint venture as we consider these to be substantive participation rights. Our joint venture agreements also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the property and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan.

 

18



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

The table below provides general information on each of our joint ventures as of March 31, 2011 (in thousands):

 

Property

 

Partner

 

Ownership
Interest

 

Economic
Interest

 

Square
Feet

 

Acquired

 

Acquisition
Price
(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

1515 Broadway(2)

 

SITQ

 

55.00%

 

68.45%

 

1,750

 

05/02

$

483,500

100 Park Avenue

 

Prudential

 

49.90%

 

49.90%

 

834

 

02/00

$

95,800

379 West Broadway

 

Sutton

 

45.00%

 

45.00%

 

62

 

12/05

$

19,750

21 West 34th Street

 

Sutton

 

50.00%

 

50.00%

 

30

 

07/05

$

22,400

800 Third Avenue(3)

 

Private Investors

 

42.95%

 

42.95%

 

526

 

12/06

$

285,000

One Court Square

 

JP Morgan

 

30.00%

 

30.00%

 

1,402

 

01/07

$

533,500

1604-1610 Broadway

 

Onyx/Sutton

 

45.00%

 

63.00%

 

30

 

11/05

$

4,400

1745 Broadway(4)

 

Witkoff/SITQ/Lehman Bros.

 

32.26%

 

32.26%

 

674

 

04/07

$

520,000

1 and 2 Jericho Plaza

 

Onyx/Credit Suisse

 

20.26%

 

20.26%

 

640

 

04/07

$

210,000

16 Court Street

 

CIF

 

35.00%

 

35.00%

 

318

 

07/07

$

107,500

The Meadows(5)

 

Onyx

 

50.00%

 

50.00%

 

582

 

09/07

$

111,500

388 and 390 Greenwich Street(6)

 

SITQ

 

50.60%

 

50.60%

 

2,600

 

12/07

$

1,575,000

27-29 West 34th Street

 

Sutton

 

50.00%

 

50.00%

 

41

 

01/06

$

30,000

1551-1555 Broadway

 

Sutton

 

10.00%

 

10.00%

 

26

 

07/05

$

80,100

717 Fifth Avenue

 

Sutton/Nakash

 

32.75%

 

32.75%

 

120

 

09/06

$

251,900

141 Fifth Avenue(7)

 

Sutton/Rapport

 

45.00%

 

45.00%

 

22

 

09/05

$

13,250

180/182 Broadway and 63 Nassau Street(7) (8)

 

Harel/Sutton

 

25.50%

 

25.50%

 

71

 

02/08

$

43,600

600 Lexington Avenue

 

CPPIB

 

55.00%

 

55.00%

 

304

 

05/10

$

193,000

11 West 34th Street(9)

 

Private Investor/Sutton

 

30.00%

 

30.00%

 

17

 

12/10

$

10,800

7 Renaissance

 

Cappelli

 

50.00%

 

50.00%

 

37

 

12/10

$

4,000

3 Columbus Circle(10)

 

Moinian

 

48.90%

 

48.90%

 

769

 

01/11

$

500,000

280 Park Avenue(11)

 

Vornado

 

50.00%

 

50.00%

 

1,237

 

03/11

$

400,000

 

 


 

 

 

(1)

 

Acquisition price represents the actual or implied purchase price for the joint venture.

 

(2)

 

Under a tax protection agreement established to protect the limited partners of the partnership that transferred 1515 Broadway to the joint venture, the joint venture has agreed not to adversely affect the limited partners’ tax positions before December 2011. One tenant, whose leases primarily end in 2015, represents approximately 74.4% of this joint venture’s annualized rent at March 31, 2011. See Note 19.

 

(3)

 

We invested approximately $109.5 million in this asset through the origination of a loan secured by up to 47% of the interests in the property’s ownership, with an option to convert the loan to an equity interest, which was exercised in December 2008. Certain existing members had the right to re-acquire approximately 4% of the property’s equity. These interests were re-acquired in December 2008 and reduced our interest to 42.95%

 

(4)

 

We have the ability to syndicate our interest down to 14.79%.

 

(5)

 

We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009.

 

(6)

 

The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.

 

(7)

 

The deconsolidation of these joint ventures in 2010 resulted in an adjustment to retained earnings of approximately $3.0 million and to the noncontrolling interests in other partnerships of approximately $9.5 million.

 

(8)

 

In December 2010, the Company’s 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing. The joint venture also admitted Harel Insurance and Finance, which contributed $28.1 million to the joint venture, for a 49 percent partnership interest.

 

(9)

 

In December 2010, the Company’s $12.0 million first mortgage collateralized by 11 West 34th Street was repaid at par, resulting in the Company’s recognition of additional income of approximately $1.1 million. Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.

 

(10)

 

We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt. See Note 19.

 

(11)

 

In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30 million of related floating rate financing which matures in June 2016 and carried a weighted average interest rate for the quarter of 1.16%.See Note 5.

 

We finance our joint ventures with non-recourse debt. The first mortgage notes and other loan payable collateralized by the respective joint venture properties and assignment of leases at March 31, 2011 and December 31, 2010, respectively, are as follows (in thousands):

 

19



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

Property

 

Maturity
Date

 

Interest
Rate
(1)

 

 

March 31,
2011

 

December 31,
2010

 

 

 

 

 

 

 

 

 

 

100 Park Avenue(2)

 

09/2014

 

6.64

%

$

204,946

$

204,946

21 West 34th Street

 

12/2016

 

5.76

%

$

100,000

$

100,000

800 Third Avenue

 

08/2017

 

6.00

%

$

20,910

$

20,910

One Court Square

 

09/2015

 

4.91

%

$

315,000

$

315,000

1604-1610 Broadway(3)

 

04/2012

 

5.66

%

$

27,000

$

27,000

388 and 390 Greenwich Street(4)

 

12/2017

 

5.19

%

$

1,106,758

$

1,106,758

1745 Broadway

 

01/2017

 

5.68

%

$

340,000

$

340,000

141 Fifth Avenue

 

06/2017

 

5.70

%

$

25,000

$

25,000

1 and 2 Jericho Plaza

 

05/2017

 

5.65

%

$

163,750

$

163,750

Total fixed rate debt

 

 

 

 

 

$

2,303,364

$

2,303,364

1515 Broadway(5)

 

12/2014

 

3.50

%

$

459,804

$

462,896

The Meadows(6)

 

09/2012

 

1.61

%

$

86,454

$

87,034

388 and 390 Greenwich Street(4)

 

12/2017

 

1.41

%

$

31,622

$

31,622

16 Court Street

 

10/2013

 

2.76

%

$

86,431

$

86,844

27-29 West 34th Street

 

05/2011

 

1.91

%

$

54,263

$

54,375

1551-1555 Broadway(7)

 

10/2011

 

4.28

%

$

127,350

$

128,600

521 Fifth Avenue(8)

 

---

 

---

 

$

---

$

140,000

717 Fifth Avenue(9)

 

09/2011

 

5.25

%

$

245,000

$

245,000

379 West Broadway

 

07/2011

 

1.91

%

$

20,991

$

20,991

180/182 Broadway(10)

 

12/2013

 

3.01

%

$

16,722

$

8,509

600 Lexington Avenue

 

10/2017

 

2.30

%

$

125,000

$

125,000

11 West 34th Street

 

01/2016

 

4.87

%

$

17,953

$

18,000

3 Columbus Circle(11)

 

01/2014

 

7.50

%

$

250,000

 

---

Other loan payable

 

06/2016

 

1.16

%

$

30,000

 

---

Total floating rate debt

 

 

 

 

 

$

1,551,590

$

1,408,871

 

 

 

 

 

 

 

 

 

 

Total mortgages and other loan payable

 

 

 

 

 

$

3,854,954

$

3,712,235

 

 


 

 

 

(1)

 

Interest rate represents the effective all-in weighted average interest rate for the quarter ended March 31, 2011.

(2)

 

This loan has a committed amount of $215.0 million.

(3)

 

This loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.

(4)

 

Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating. Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us. We believe it is unlikely that we will be required to perform under this guarantee.

(5)

 

In December 2009 the $625.0 million mortgage was repaid and replaced with a $475.0 million mortgage. In connection with the refinancing, the partners made an aggregate $163.9 million capital contribution to the joint venture. See Note 19.

(6)

 

This loan has a committed amount of $91.2 million.

(7)

 

This amortizing loan was fully funded in September 2009 at the committed amount of $133.6 million.

(8)

 

We acquired the noncontrolling interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 19.

(9)

 

This loan has a committed amount of $285.0 million.

(10)

 

The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan, which has a committed amount of $90.0 million, is only secured by 180/182 Broadway.

(11)

 

We provided 50% of this financing to the joint venture. This loan was refinanced in April 2011 and replaced with a $260.0 million loan. See Note 19.

 

We act as the operating partner and day-to-day manager for all our joint ventures, except for 800 Third Avenue, 1 and 2 Jericho Plaza, 3 Columbus Circle and The Meadows. We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to our joint ventures. We earned approximately $4.0 million and $2.5 million from these services for the three months ended March 31, 2011, and 2010, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.

 

20



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

Gramercy Capital Corp.

In April 2004, we formed Gramercy as a commercial real estate finance business.  Gramercy qualified as a REIT for federal income tax purposes and expects to qualify for its current fiscal year.

 

At March 31, 2011, we held 5,349,370 shares, or approximately 10.71% of Gramercy’s common stock.  Our total investment of approximately $22.7 million is based on the market value of our common stock investment in Gramercy at March 31, 2011.  As we no longer have any significant influence over Gramercy, we account for our investment as available-for-sale securities.

 

Effective May 2005, June 2009 and October 2009, Gramercy entered into lease agreements with an affiliate of ours, for their corporate offices at 420 Lexington Avenue, New York, NY.  The first lease is for approximately 7,300 square feet and carries a term of ten years with rents of approximately $249,000 per annum for year one increasing to $315,000 per annum in year ten.  The second lease is for approximately 900 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $35,300 per annum for year one increasing to $42,800 per annum in year six.  The third lease is for approximately 1,400 square feet pursuant to a lease which ends in April 2015, with annual rent under this lease of approximately $67,300 per annum for year one increasing to $80,500 per annum in year six.

 

See Note 5 for information on our debt and preferred equity investments in which Gramercy also holds an interest.

 

On October 28, 2009, Gramercy announced the appointment of Roger M. Cozzi, as President and Chief Executive Officer, effective immediately.  Effective as of November 13, 2009, Timothy J. O’Connor was appointed as President of Gramercy.  Mr. Holliday remains a board member of Gramercy.

 

The combined balance sheets for the unconsolidated joint ventures, at March 31, 2011 and December 31, 2010, are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

March 31,
2011

 

December 31,
2010

 

Assets

 

 

 

 

 

Commercial real estate property, net

 

$

5,087,383

 

$

4,831,897

 

Debt investments

 

400,000

 

---

 

Other assets

 

586,035

 

516,049

 

Total assets

 

$

6,073,418

 

$

5,347,946

 

 

 

 

 

 

 

Liabilities and members’ equity

 

 

 

 

 

Mortgages and other loan payable

 

$

3,854,954

 

$

3,712,235

 

Other liabilities

 

233,904

 

233,463

 

Members’ equity

 

1,984,560

 

1,402,248

 

Total liabilities and members’ equity

 

$

6,073,418

 

$

5,347,946

 

Company’s net investment in unconsolidated joint ventures

 

$

916,600

 

$

631,570

 

 

The combined statements of income for the unconsolidated joint ventures, from acquisition date through March 31, 2011 and 2010 are as follows (in thousands):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2011

 

2010

 

Total revenues

$

123,560

$

174,140

 

Operating expenses

 

20,601

 

30,167

 

Real estate taxes

 

13,450

 

22,306

 

Interest

 

47,637

 

53,957

 

Depreciation and amortization

 

31,724

 

37,747

 

Transaction related costs

 

65

 

---

 

Total expenses

 

113,477

 

144,177

 

Net income

$

10,083

$

29,963

 

Company’s equity in net income of unconsolidated joint ventures

$

8,206

$

15,376

 

 

21



Table of Contents

 

SL Green Realty Corp.

Notes to Consolidated Financial Statements

(Unaudited)

March 31, 2011

 

7.  Deferred Costs

 

Deferred costs at March 31, 2011 and December 31, 2010 consisted of the following (in thousands):

 

 

 

March 31,
2011

 

December 31,
2010

 

Deferred financing

$

95,303

$

86,256

 

Deferred leasing

 

205,998

 

200,633

 

 

 

301,301

 

286,889

 

Less accumulated amortization

 

(120,589

)

(114,372

)

Deferred costs, net

$

180,712

$

172,517

 

 

8.  Mortgages and Other Loans Payable

 

The first mortgages and other loans payable collateralized by the respective properties and assignment of leases at March 31, 2011 and December 31, 2010, respectively, were as follows (in thousands):

 

Property(1)

 

Maturity
Date

 

Interest
Rate
(2)

 

 

March 31,
2011

 

 

December 31,
2010

 

711 Third Avenue

 

06/2015

 

4.99

%

$

120,000

 

$

120,000

 

420 Lexington Avenue (3)

 

09/2016

 

7.15

%

$

188,893

 

$

149,141

 

673 First Avenue

 

02/2013

 

5.67

%

$

30,561

 

$

30,781

 

220 East 42nd Street

 

11/2013

 

5.24

%

$

193,662

 

$

194,758

 

625 Madison Avenue

 

11/2015

 

7.22

%

$

131,451

 

$

132,209

 

609 Fifth Avenue

 

10/2013

 

5.85

%

$

96,107

 

$

96,502

 

609 Partners, LLC

 

07/2014

 

5.00

%

$

31,722

 

$

31,722

 

485 Lexington Avenue

 

02/2017

 

5.61

%

$

450,000

 

$

450,000

 

120 West 45th Street

 

02/2017

 

6.12

%

$

170,000

 

$

170,000