SL Green to Acquire $390.8M in Investments from Gramercy Capital

SL Green has been particularly active this year in continuing its portfolio-repositioning strategy in New York. Recent deals include the $250 million recapitalization of Three Columbus Circle as well as an agreement to sell the 292,000-square-foot office building at 19 W. 44th St.

December 6, 2010
By Allison Landa, News Editor

Courtesy Flickr Creative Commons user wookie

Real estate investment trust SL Green has committed to purchasing interests in three Gramercy Capital Corp. properties in New York. The $390.8 million agreement is comprised of a 45 percent joint interest in the leased fee of 885 Third Avenue for $39.3 million plus assumed mortgage debt of $120.4 million; a 45 percent joint venture interest in the leased fee of 2 Herald Square for $25.6 million plus assumed mortgage debt of $86.1 million; and the entire leased fee in 292 Madison Avenue for approximately $19.2 million plus assumed mortgage debt of $59.1 million.

All assets are leased to third-party operators. In an unrelated transaction, the company assumed a $38.7 million mezzanine loan secured by 601 W. 26th St. in New York.

According to SL Green president Andrew Mathias, the deals are an important milestone in the consolidation of Midtown ownership of land and improvements, which represent 1.2 million square feet.

SL Green has been particularly active this year. In October, it agreed to a $250 million recapitalization of Three Columbus Circle, a nearly 770,000-square-foot office tower nearing foreclosure, and in September, the firm continued its portfolio-repositioning strategy via a deal to sell the 292,000-square-foot office building at 19 W. 44th Street to Deka Immobilien. The transaction was valued at $123.2 million.