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Monday, 03 March 2014

SL Green to Buy Rest of Citi's Manhattan HQ for $783Mln

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SL Green Realty Corp. has agreed to pay roughly $783 million for the 49.4 percent stake it did not already own in 388-390 Greenwich St., a 2.6 million-square-foot office complex in lower Manhattan.

The New York REIT is purchasing the stake from Ivanhoe Cambridge, which is being advised by Callahan Capital Properties. The deal, which is expected to close in the second quarter, values the property at $1.585 billion.

SL Green and then-Ivanhoe subsidiary SITQ Immobilier paid $1.575 billion for the property in 2007. SITQ has since been consolidated into Ivanhoe.

The property is comprised of a 39-story building at 388 Greenwich and an eight-story building at 390 Greenwich. It is fully occupied by Citigroup Inc., which in December extended its lease by 15 years through the end of 2035.

The financial services company uses the property as its headquarters, paying $41.68/sf in rent that is subject to increases based on changes to the Consumer Price Index. Citi has the option to purchase the property, between Hubert and North Monroe streets in the Tribeca area, between 2017 and 2020.

The 27-year-old property backs $1.1 billion of debt that was provided by Westdeutsche Immobilienbank in 2007.

The financing is comprised of a $996.1 million piece that pays a 3.16 percent coupon and a $142.3 million piece that pays a rate pegged to Libor plus 115 basis points. It matures in December 2017.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Company: Saul Centers, Inc.
  • Valuation: More than $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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