SL Green, Gramercy Venture to Sell N.J. Office Interest for $230M
- Dec 08, 2008
SL Green Realty Corp. and Gramercy Capital Corp. have announced an agreement to sell their interests in a three-building, 670,000-square-foot property in Bridgewater, N.J., for $230 million. The property is located in the Central New Jersey submarket surrounding the intersection of Interstate 287 and Route 22 near Raritan. The buyer is Chicago-based Inland American Real Estate Trust Inc. According to data tracked by Real Capital Analytics, SL Green and Gramercy bought the property with Gale Cos. in June of 2006 for $250 million. When Gale was acquired later that year, SL Green and Gramercy bought Gale out. The purchase price includes the assumption of an existing $190 million mortgage loan originally made by Goldman Sachs Mortgage Co. at a 5.75 percent rate of interest. “That’s the only way big deals are getting done today,” Dan Fasulo, managing director of Real Capital Analytics, told CPN today. “There are no acquisition loans available at reasonable interest rates.” The purchase price breaks down to approximately $343 per square foot, which Fasulo ranked near the top of the Northern New Jersey office market. SL Green Realty Corp. is a REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. As of Sept. 30, 2008, the company owned 30 New York City office properties totaling approximately 23.7 million square feet, making it New York’s largest office landlord.