TradersHuddle.com - SL Green Renews 372,520-Sq-Ft Lease with the City of New York at 100 Church Street
NEW YORK-( Business Wire )-
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.
About SL Green:
SL Green Realty Corp., New York City's largest office landlord, is the only 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, 2012, SL Green owned interests in 70 Manhattan properties totaling more than 39.0 million square feet. This included ownership interests in 27.3 million square feet of commercial properties and debt and preferred equity investments secured by 11.7 million square feet of properties. In addition to its Manhattan investments, SL Green holds ownership interests in 32 suburban assets totaling 6.9 million square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, along with four development properties in the suburbs encompassing approximately 0.5 million square feet.
Forward Looking Statements
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry and the Manhattan, Brooklyn, Queens, Westchester County, Connecticut, Long Island and New Jersey office markets, business strategies, expansion and growth of our operations and other similar matters, are forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate.
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Forward-looking statements contained in this press release are subject to a number of risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. These risks and uncertainties include the effect of the credit crisis on general economic, business and financial conditions, and on the New York metropolitan real estate market in particular; dependence upon certain geographic markets; risks of real estate acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; risks relating to structured finance investments; availability and creditworthiness of prospective tenants and borrowers; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; adverse changes in the real estate markets, including reduced demand for office space, increasing vacancy, and increasing availability of sublease space; availability of capital (debt and equity); unanticipated increases in financing and other costs, including a rise in interest rates; our ability to comply with financial covenants in our debt instruments; our ability to maintain our status as a REIT; risks of investing through joint venture structures, including the fulfillment by our partners of their financial obligations; the continuing threat of terrorist attacks, in particular in the New York metropolitan area and on our tenants; our ability to obtain adequate insurance coverage at a reasonable cost and the potential for losses in excess of our insurance coverage, including as a result of environmental contamination; and legislative, regulatory and/or safety requirements adversely affecting REITs and the real estate business, including costs of compliance with the Americans with Disabilities Act, the Fair Housing Act and other similar laws and regulations.
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SL Green Realty Corp.Steven DurelsExec VP, Director of Leasing and Real PropertyorHeidi Gillette, 212-594-2700Director, Investor Relations