4-Traders.com - SL Green Realty Corp : SL Green Renews 372,520-Sq-Ft Lease with the City of New York at 100 Church Street
Anchor Tenant Extends for 20 Years
SL Green Realty Corp. (NYSE: SLG) announced today that the City of New York has renewed its lease covering 372,520 square feet for offices of the law division at 100 Church Street, the 21-story, 1.05 million square foot building located in downtown Manhattan. The 20-year lease renewal commences November, 2013 covering floors 2-6, 20 and a portion of the building's concourse level. The City's lease at 100 Church Street was scheduled to expire in October, 2013.
The Company also announced that is has refinanced the property with a new $230 million, 10-year loan bearing interest at a rate of 4.675%. Proceeds from the financing, which was provided by Wells Fargo Bank, will be used for general corporate purposes.
"We are delighted to have the City of New York as our anchor tenant. The City's decision to extend its commitment is testament to the quality of our recently completed redevelopment of 100 Church Street," said Steven Durels, Executive Vice President and Director of Leasing and Real Property for SL Green. Mr. Durels continued, "This early renewal is consistent with our firm's proactive management of future lease expirations which has led to consistently high portfolio occupancy."
SL Green acquired the building in 2010 after it had been 56% vacant for over 5 years. A comprehensive redevelopment of the property, which was completed in 2011, included a new lobby, windows, infrastructure upgrades, new roofs and retail repositioning. Building occupancy is now 82% and major tenants, in addition to the City of New York, include HealthFirst, Niche Media, Interactive Data Corp, Centerline Capital Group and the State of New York.
CBRE's Michael Geoghegan and John Morrill represented the City of New York in the transaction.
Caroline Silk, Esq. represented the City of New York in-house, while Peter Strauss, Esq. and Christopher Smith, Esq. of Shearman & Sterling acted on behalf of SL Green.