SL Green Realty Corp. (NYSE:SLG) The Company announced an agreement to acquire Ivanhoe Cambridge’s stake in 388-390 Greenwich Street, thereby assuming full ownership of Citigroup Inc.’s headquarters 2.6 million square foot property located in Tribeca. The transaction values the consolidated investment interest at $1.585 billion. Callahan Capital Properties served as an advisor to Ivanhoe Cambridge for this transaction. Closing is anticipated to occur during the 2nd quarter of 2014.
388 Greenwich is a 39-story tower with highly efficient floors and sweeping, unobstructed views. 390 Greenwich is an eight-story building featuring 94,000 square foot floors that are considered some of the finest trading floors in Manhattan. The combined property is triple-net leased to an affiliate of Citigroup Inc. (“Citi”) through 2035, under an extension that was announced in December 2013. The agreement with Citi includes an option for Citi to acquire the properties during the period from December 1, 2017 through December 31, 2020. SL Green and an affiliate of Ivanhoe Cambridge together acquired the property in late 2007.
SL Green President Andrew Mathias commented, “We have enjoyed a successful partnership with Ivanhoe Cambridge at 388-390 Greenwich, capped by Citi’s recent lease extension, which was one of the largest lease transactions ever executed in New York. Citi is one of the world’s great financial institutions and has been a valued tenant at several SL Green properties. We look forward to an ongoing strong relationship with Ivanhoe Cambridge and Citi as we continue to grow as New York City’s largest office landlord.”
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, 2013, SL Green owned interests in 92 Manhattan buildings totaling 44.4 million square feet. This included ownership interests in 27.8 million square feet of commercial buildings and debt and preferred equity investments secured by 16.6 million square feet of buildings. In addition to its Manhattan investments, SL Green holds ownership interests in 31 suburban buildings totaling 5.4 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey, along with three development buildings in the suburbs encompassing approximately 0.4 million square feet. The Company also has ownership interests in 28 properties encompassing 52 buildings totaling 3.7 million square feet in southern California.