SL Green Positions For Takeover of 3 Prime Manhattan Assets
Crain's New York Business reports: On Monday, SL Green Realty Corp announced that it would acquire the land and lease fee rights associated with the Lipstick Building at 885 Third Avenue, 2 Herald Square, and 292 Madison Avenue in Manhattan. The firm will pay just $391 million for the three currently distressed office and retail properties, plus the assumption of $266 million currently backing the assets. All three properties have spectacular locations in a market that offers a large potential profit. Real Capital Analytics’ managing director Dan Fasulo responded to the announcement by remarking that, “All these transactions put SL Green in the enviable position to takeover these assets…Also, now all these troubled owners have to pay millions of dollars of income to SL Green as part of their lease agreement for the building.”
Beyond SL Green’s immediate and future gains, these transactions are also significant because they help resolve large troubled situations weighing on the market. Roger Cozzi, chief executive at Gramercy Capital Corp, which is the current owner of the Lipstick Building, stated that, “These transactions enable us to monetize several non-controlling co-investment positions, produce a substantial increase in our corporate liquidity, and further deleverage Gramercy’s balance sheet.” SL Green will be assuming the $39 million mezzanine loan currently backing Gramercy’s equity interests in the Starrett-Lehigh Building at 601 W 26th St.
View the full article on Crain's New York Business: SL Green Positions For Takeover of 3 Prime Manhattan Assets
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Posted by: Nina Turner