The Real Deal New York

SL Green acquires three troubled properties

December 06, 2010 06:33PM


From left: SL Green CEO Marc Holliday, the Lipstick Building at 885 Third Avenue and 292 Madison Avenue
SL Green Realty has agreed to buy close to $391 million worth of office and retail investments from Gramercy Capital. As part of the deal, SL Green will own the land and lease fee for three properties — the Lipstick Building at 885 Third Avenue, 2 Herald Square and 292 Madison — but will also assume about $266 million in debt, Crain’s reported. SL Green will pay $39 million to buy Gramercy’s 45 percent joint venture interest in the Lipstick Building, $26 million for their interest in 2 Herald Square and $19 million for 292 Madison’s land and lease fee. “It’s a win-win for both sides,” said Michael Knott, an analyst at Green Street Advisors. “Gramercy needs the liquidity, and SL Green is a natural buyer for these assets because they already are joint venture partners.” [Crain’s]

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