SL Green Announces Sale of Tower 45 and Joint Venture of SoHo Property (2024)

Strategic Transactions Moving Forward in aStrong Market

SL Green Realty Corp. (NYSE:SLG), an S&P 500 company and NewYork City's largest commercial property owner, today announced twotransactions with an aggregate value of $642.8 million:

1) An agreement to sell Tower 45, the office building located at120 West 45^th Street, for $365.0 million, orapproximately $830 per square foot; and

2) The formation of a joint venture with Invesco Real Estate(“Invesco”) for the ownership of 131-137 Spring Street, a 73,000square foot mixed-use asset located in SoHo. Under the terms of theagreement, Invesco will acquire an 80 percent stake in theproperty, with SL Green retaining a 20 percent ownership interestas well as management and leasing responsibilities. The transactionvalues the property at $277.8 million.

Both transactions are expected to be completed in the thirdquarter, subject to customary closing conditions.

SL Green President Andrew Mathias commented, “As illustrated bythese transactions, the demand for high-quality commercial assetsin the Manhattan market continues to be very strong, even asinterest rates have risen in recent months. After re-positioningboth of these assets to unlock additional value, we will realize inexcess of $400.0 million of net cash proceeds from thesetransactions, which were executed at a blended cap rate of 3.3percent.

He continued, “Our intention is to fund the Company’s pendingacquisition of the iconic 11 Madison property through a strategiccombination of property sales, joint ventures, new financing andexisting property debt refinancings, while retaining substantialcash for other investments in the pipeline. These transactionsannounced today are consistent with that plan.”

The 440,000-square-foot Tower 45 was acquired by SL Green in2007 as part of the merger with Reckson Associates. Subsequently,the Company executed a significant capital improvement program thatsuccessfully repositioned the property. Tower 45 is currently 96.2%leased. Richard Baxter of Jones Lang LaSalle and Darcy Stacom ofCBRE represented SL Green on this transaction.

131-137 Spring Street, a six-story building in the heart of thepopular SoHo shopping district, features 100 feet of ground floorfrontage on Spring Street and houses the multi-level flagshipstores for Diesel and Burberry while the balance of the buildingincludes office space and residential rental units.

Isaac Zion, co-Chief Investment Officer of SL Green, commented,“These transactions fit perfectly with the acquisition of 11Madison, which is well-leased for the long term and located in oneof New York City’s strongest commercial office submarkets. As weindicated at our December Investor Conference, we expected to sellcertain assets and create joint ventures for others during 2015 anddeploy the proceeds into more accretive opportunities. Clearly, thepieces are coming together nicely.”

He added, “Not to be overshadowed by the bigger strategicpicture -- we are very pleased to be forming this new venture withInvesco in SoHo. We hold the Invesco real estate investmentorganization in extremely high regard and their New York teamshares our vision for this prime asset. We look forward to workingwith them in an effort to create even greater value in thisincredibly well-positioned property, taking full advantage of itsdeeply embedded growth potential as the area’s positive momentumcontinues.”

About SL Green Realty Corp.

SL Green Realty Corp., an S&P 500 company and New YorkCity's largest office landlord, is a fully integrated real estateinvestment trust, or REIT, that is focused primarily on acquiring,managing and maximizing value of Manhattan commercial properties.As of March 31, 2015, SL Green held interests in 117 Manhattanbuildings totaling 43.6 million square feet. This includedownership interests in 29.0 million square feet of commercialbuildings and debt and preferred equity investments secured by 14.6million square feet of buildings. In addition to its Manhattaninvestments, SL Green held ownership interests in 37 suburbanbuildings totaling 5.9 million square feet in Brooklyn, LongIsland, Westchester County, Connecticut and New Jersey. For moreinformation, please visit: http://slgreen.com/

About Invesco Real Estate

Established in 1983, Invesco Real Estate manages $64.1billion of real estate investments, including $36.1 billion indirect real estate investments and $28 billion in real estatesecurities (as of March 31, 2015). With more than 400employees in 20 offices worldwide, the Dallas-based group focuseson top-down market and property fundamentals combined withbottom-up local market intelligence. Senior members of themanagement team have worked together for more than 25 years,contributing to the consistent implementation of Invesco’sinvestment strategy and resulting performance. Additionalinformation is available atwww.invescorealestate.com.

Forward-looking Statement

This press release includes certain statements that may bedeemed to be "forward-looking statements" within the meaning of thePrivate Securities Litigation Reform Act of 1995 and are intendedto be covered by the safe harbor provisions thereof. Allstatements, other than statements of historical facts, included inthis press release that address activities, events or developmentsthat we expect, believe or anticipate will or may occur in thefuture, are forward-looking statements. Forward-looking statementsare not guarantees of future performance and we caution you not toplace undue reliance on such statements. Forward-looking statementsare generally identifiable by the use of the words "may," "will,""should," "expect," "anticipate," "estimate," "believe," "intend,""project," "continue," or the negative of these words, or othersimilar words or terms. Forward-looking statements contained inthis press release are subject to a number of risks anduncertainties, many of which are beyond our control, that may causeour actual results, performance or achievements to be materiallydifferent from future results, performance or achievementsexpressed or implied by forward-looking statements made by us.Factors and risks to our business that could cause actual resultsto differ from those contained in the forward-looking statementsare described in our filings with the Securities and ExchangeCommission. We undertake no obligation to publicly update or reviseany forward-looking statements, whether as a result of futureevents, new information or otherwise.

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SL Green Realty Corp.
Andrew Mathias
President
-or-
Matt DiLiberto
Chief Financial Officer
212.594.2700