SL Green Announces Sale of 49% Interest in 220 East 42nd Street
July 22 2021 - 9:09AM
SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office
landlord, today announced that it has sold a 49% interest in 220
East 42nd Street to a real estate fund managed by Meritz
Alternative Investment Management for gross consideration of $790.1
million. SL Green retained a 51% interest in the property and will
continue to oversee management and leasing of the building. The
transaction generated net cash proceeds to SL Green of $136.1M.
“This transaction demonstrates the continued global demand for
core New York City office properties, particularly those that are
well leased on a long-term basis to credit tenants,” said
Harrison Sitomer, Senior Vice President of SL
Green. “With the new joint venture, 220 East 42nd Street
will continue to provide SL Green shareholders with steady
contractual cash flow. We are thrilled to be partnering again with
Meritz on this historic asset.”
“We maintain a firm belief in the success of the New York City
market. As such, this is our fourth transaction with SL Green and
we look forward to continuing our partnership,” said Jun
Hyun Shin, CEO of Meritz Alternative Investment
Management.
Also known as the News Building, 220 East 42nd Street is a
37-story art-deco skyscraper that was originally the headquarters
for The New York Daily News. SL Green purchased the property in
February 2003. The company then commenced a multi-year
repositioning and re-tenanting of the property. Currently boasting
occupancy of 93 percent with a weighted average lease term of over
15 years, the building’s tenant roster includes the Visiting Nurse
Service of New York, Omnicom Group, local television station WPIX
and the United Nations. SL Green was advised by Adam Spies and Doug
Harmon of Cushman and Wakefield.
About SL Green Realty Corp.
SL Green Realty Corp., Manhattan'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 June 30, 2021, SL Green held
interests in 77 buildings totaling 35.3 million square feet. This
included ownership interests in 27.1 million square feet of
Manhattan buildings and 7.4 million square feet securing debt and
preferred equity investments.
Forward Looking Statement
This press release includes certain statements that may be
deemed to be “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 and are intended
to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and actual results or
developments may differ materially, and we caution you not to place
undue reliance on such statements. Forward-looking statements are
generally identifiable by the use of the words “may,” “will,”
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“project,” “continue,” or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements include risks and uncertainties related
to the on-going COVID-19 pandemic and the duration and impact it
will have on our business and the industry as a whole and the other
risks and uncertainties described in our filings with the
Securities and Exchange Commission. Except to the extent required
by law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of future events,
new information or otherwise.
SLG - A&D
Matt DiLibertoChief Financial Officer212.594.2700
SL Green Realty (NYSE:SLG)
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