SL Green Realty Corp. (NYSE:SLG) today announced that it has successfully refinanced 388-390 Greenwich Street. The new 7-year, $1.45 billion mortgage was provided by a lending group led by Citigroup and included Bank of China, Wells Fargo, and Barclays.
The new loan, which bears interest at LIBOR + 1.75%, features an initial 4-year term and three, 1-year as-of-right extension options, and replaces the former $1.138 billion financing. The refinancing follows the December, 2013 triple net lease renewal by an affiliate of Citigroup Inc. (“Citi”) of the entire 2,634,670 square foot complex through December 31, 2035 and SL Green’s subsequent agreement to purchase Ivanhoe Cambridge’s stake in the properties.
A portion of the net proceeds from the refinancing were used to close on SL Green’s purchase of Ivanhoe Cambridge’s interest, which occurred simultaneously with the closing of the new financing.
Andrew Mathias, President of SL Green, said, “Our ability to execute this refinancing under favorable terms stems from the lending community’s demonstrated confidence in SL Green, the overall strength of the New York City office market, and Citi’s long-term commitment to the properties.”
Eastdil Secured arranged the refinancing on behalf of SL Green.
About SL Green Realty Corp.
SL Green Realty Corp., New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2014, SL Green held interests in 95 Manhattan buildings totaling 45.1 million square feet. This included ownership interests in 28.4 million square feet of commercial buildings and debt and preferred equity investments secured by 16.7 million square feet of buildings. In addition to its Manhattan investments, SL Green held ownership interests in 35 suburban buildings totaling 5.9 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.