SL Green Recapitalizes 2 Herald Square & Signs Four Transactions Totaling 177,081 Square Feet
December 03 2018 - 7:45AM
Business Wire
Building Occupancy Rises Above 93%
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has secured $150 million of first
mortgage financing for 2 Herald Square, and sold a 49% partnership
interest to an Israeli institutional investor. The recapitalization
is the first step of a value-add capital program that will restore
iconic status to this best-in-class building located on one of the
most prominent corners in New York.
In addition, SL Green announced the signing of four transactions
at the Property, totaling 177,081 square feet:
(i) the execution of an agreement to convey a
30-year leasehold condominium covering 95,370 square feet to Mercy
College;
(ii) the signing of a new 29,388-square-foot
lease to expand WeWork; and,
(iii) the signing of new retail leases with
Victoria Secret and with Happy Socks, filling a recaptured Sixth
Avenue lobby space that SL Green converted into a retail
opportunity.
Mercy College’s 30-year transaction covers the building’s third,
fourth and seventh floors and brings Mercy’s total footprint to
95,370 square feet from its existing 55,000 square feet. As part of
the transaction, Mercy will also receive a new dedicated 34th
Street lobby by relocating its ground floor entrance and absorbing
a portion of previously vacant retail space.
WeWork has expanded its footprint within the building with a new
29,388-square-foot lease. Amazon, through WeWork’s enterprise
client account, currently occupies 122,903 square feet across
floors eight through 11 and the penthouse. Following the lease
expansion, WeWork will also occupy a new dedicated lobby space
located on 35th Street.
Building on the momentum already started from Victoria’s
Secret’s recent corner extension, Happy Socks signed a new retail
lease on Sixth Avenue, fronting Herald Square. Together, these
transactions raise the building occupancy to 93.2%.
“Following our successful acquisition of the leasehold at 2
Herald Square, we executed our business plan ahead of schedule by
expanding existing tenants from within as well as adding a new
tenant to our roster,” said Brett Herschenfeld, Managing
Director at SL Green, who continued. “In just six months, we
have shown that with strong management and capital investment, this
asset in a prime Herald Square location immediately attracts global
capital and tenants.”
Located on a corner of Herald Square – at the intersection of
Sixth Avenue, Broadway, and 34th Street – 2 Herald is a
369,000-square-foot office and retail asset at one of Manhattan’s
busiest locations and most vibrant retail and office submarket.
About SL Green Realty
Corp.
SL Green Realty Corp., an S&P 500 company and New York
City's largest office landlord, is a fully integrated real estate
investment trust, or REIT, that is focused primarily on acquiring,
managing and maximizing value of Manhattan commercial properties.
As of September 30, 2018, SL Green held interests in 106 Manhattan
buildings totaling 46.4 million square feet. This included
ownership interests in 28.2 million square feet of Manhattan
buildings and 18.2 million square feet of buildings securing debt
and preferred equity investments. In addition, SL Green held
ownership interests in 15 suburban buildings totaling 2.3 million
square feet in Brooklyn, Westchester County, and Connecticut.
Forward-looking Statement
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statements, other than statements of historical facts, included in
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that we expect, believe or anticipate will or may occur in the
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subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
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Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of future events, new information or otherwise.
SLG-LEAS
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version on businesswire.com: https://www.businesswire.com/news/home/20181203005246/en/
Investors:Matt DiLibertoChief Financial OfficerSL Green Realty
Corp.(212) 594-2700
Press:BerlinRosenslgreen@berlinrosen.com(646) 452-5637
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