SL Green Realty Corp. (NYSE: SLG) today announced that the $925 million bridge acquisition financing arranged by it for New York City’s iconic Sony Building at 550 Madison Avenue has closed.
The building, which is currently Sony's U.S. headquarters, was purchased for $1.1 billion. The financing matures contemporaneously with the expiration of Sony’s leaseback of the property, and consists of a $600 million senior loan originated by Bank of China, a $175 million senior mezzanine debt which SL Green sold to a private investment manager and a $150 million junior mezzanine debt originated by SL Green. Following completion of the financing, SL Green sold one half of its interest in the junior mezzanine debt.
The 37-story, 852,830-square-foot tower with its Chippendale-style roof pediment was designed by Philip Johnson and John Burgee and stands as one of the Manhattan skyline’s most distinctive towers. It was originally built for AT&T.
“This deal illustrates SL Green’s ability to structure, syndicate and execute financing for complex capital transactions,” said David Schonbraun, SL Green’s Co-Chief Investment Officer. “While we are best known as New York City’s largest office landlord, we also have emerged as a major player in the structured finance arena. In that regard, SL Green is now the primary provider of subordinate capital for real estate transactions in the greater New York market.”Ironhound Management was the exclusive advisor to the borrower. About SL Green Realty Corp. SL Green Realty Corp., New York City's largest office landlord, is the only fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of December 31, 2012, SL Green owned interests in 85 Manhattan properties totaling 40.8 million square feet. This included ownership interests in 27.8 million square feet of commercial properties and debt and preferred equity investments secured by 13.0 million square feet of properties. In addition to its Manhattan investments, SL Green holds ownership interests in 31 suburban assets totaling 5.4 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey, along with four development properties in the suburbs encompassing approximately 0.5 million square feet. The Company also has ownership interests in 31 properties totaling 4.5 million square feet in southern California.