SL Green Sells 40 Percent Interest in Class-A Midtown South Office
NEW YORK--(BUSINESS WIRE)--
SL Green Realty Corp. (NYSE:SLG), New York City's largest office
landlord, today announced that it has sold a 40% interest in Eleven
Madison Avenue, to PGIM Real Estate, the real estate investment business
of PGIM, Inc., the global investment management businesses of Prudential
Financial, Inc. (NYSE: PRU). The transaction values the 2.3
million-square-foot, Class-A Midtown South office property at $2.6
billion, inclusive of the costs associated with lease stipulated
improvements to the property.
SL Green realized cash proceeds of approximately $480 million at
closing, which will be used for debt reduction and other investment
opportunities. The partnership is seeking a modification to the mortgage
on the property, which, if not obtained within six months after the
closing, may result in SL Green repurchasing the sold interest from PGIM
Real Estate. The partnership expects the modification to be granted
during the fourth quarter of 2016.
PGIM Real Estate has a one-year option to acquire an additional 9% stake
in the venture at the same gross property valuation of $2.6 billion.
SL Green's co-Chief Investment Officer, Isaac Zion, commented, "PGIM
Real Estate shares our vision for Eleven Madison Avenue, a truly premier
asset, and we are delighted to continue our long-standing, mutually
beneficial relationship with this latest venture together."
"PGIM Real Estate's investment in Eleven Madison Avenue represents a
unique opportunity to partner with SL Green again and add to our
portfolio another trophy-quality office property in Manhattan that will
generate secure and stable income across market cycles," said Kevin R.
Smith, head of Americas for PGIM Real Estate.
Eleven Madison Avenue is located directly east of Madison Square Park
between 24th and 25th Streets, and spans one full city block, with park
frontage offering unobstructed west-facing views. The well-located
office building has access to public transportation, including walking
distance to five major subway lines, while the Madison Square Park area
offers an abundance of walkable dining, retail, hotel and residential
Darcy Stacom and William Shanahan of CBRE advised SL Green on this
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and 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 June 30, 2016, the
company held interests in 119 Manhattan buildings totaling 44.7 million
square feet. This included ownership interests in 28.1 million square
feet of commercial buildings and debt and preferred equity investments
secured by 16.7 million square feet of buildings. In addition, the
company held ownership interests in 31 suburban buildings totaling 4.9
million square feet in Brooklyn, Long Island, Westchester County,
Connecticut and New Jersey. For more information, please visit: http://slgreen.com/
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM Inc.,
the global investment management business of Prudential Financial, Inc.
(NYSE:PRU). Redefining the real estate investing landscape since 1970,
PGIM Real Estate has professionals in 18 cities in the Americas, Europe
and Asia Pacific with deep local knowledge and expertise, and gross
assets under management of $65.4 billion ($48.3 billion net) as of March
31, 2016. PGIM Real Estate's tenured team offers to its global client
base a broad range of real estate investment vehicles that span the
risk-return spectrum across core, core plus, value-add, debt,
securities, and specialized investment strategies. For more information,
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SL Green Realty Corp.
Source: SL Green Realty Corp.
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