SL Green Closes on Previously Announced Sale of 1.5M-SF Office Tower in Long Island City
SL Green Realty Corp. (NYSE: SLG), along with joint venture partners including JP Morgan Chase Co., have sold One Court Square in Long Island City, NY to a private investor group led by David Werner for a total consideration of $481 million, or about $324 per square foot.
The sale, previously announced by SL Green back in November 2011, includes the assumption by the buyer of $315 million in existing debt. Paramount Group, Inc., in a joint venture with affiliates of Colony Capital LLC, closed on a $125 million preferred equity investment in connection with the acquisition. It has been reported that David Werner invested $85 million in equity.
The 52-story, 1.49 million-square-foot, class A marquee office building was designed by Skidmore Owings Merrill and built in 1985 on 1.9 acres, towering above the Northwest Queens County submarket of Long Island. Since it opened, the building has been 100% leased to Citibank, NA. on a triple-net lease currently set to expire in May 2020, but with possible extensions out another 25 years.
SL Green, a 30% owner in the joint venture, received approximately $44 million in net proceeds from the sale. The company acquired its stake in the building with its 2007 acquisition of Reckson Associates Realty Corp. SL Green’s share of annualized cash in rent from Citibank is reduced from 7.5% to 6.4% according to the firm.
Douglas Harmon and Adam Spies of Eastdil Secured LLC represented the sellers in the sale. The buyers, including David Werner Real Estate and Waterbridge Capital LLC, were represented in-house, as was Paramount and Colony Capital.
Please see CoStar COMPS #2512473 for additional information on this transaction.
