The Real Deal New York

Citigroup closes on $1.8B buy of Tribeca HQ from SL Green

Bank had sold 388-390 Greenwich Street in 2007

June 13, 2016 05:44PM
By Konrad Putzier

Citigroup SL Green Realty

From left: Citigroup CEO Michael Corbat, 388Greenwich Street and Marc Holliday

UPDATED, June 14, 10:43 a.m.: Citigroup closed on the repurchase of its Tribeca headquarters at 388-390 Greenwich Street from SL Green Realty for $1.76 billion, according to public records filed with the city Monday.

The banking giant sold the two buildings to SL Green and Ivanhoe Cambridge for $1.6 billion in 2007. At the time, it secured an option to repurchase the buildings, which it now made use of. The Real Deal reported Citigroup’s plans to buy back the tower in January.

Citigroup’s headquarters consists of the nine-story, 760,000-square-foot building 390 Greenwich Street and the adjacent 39-story, 1.59-million-square-foot tower 388 Greenwich Street. Both are currently leased out to the bank.

Citi had named the buildings as its global headquarters in January and is currently renovating them. “As the establishment of our global headquarters in Lower Manhattan shows, we are committed to the city remaining our home for years to come,” a spokesperson for the bank told TRD.

SL Green had bought out Ivanhoe Cambridge in 2014 for $783 million, meaning it will receive all proceeds from the sale. In April, the company announced that it will use the money “to repay approximately $345 million of its corporate credit facility and retire the $1.45 billion mortgage” from Wells Fargo on the building.

When SL Green first announced the pending deal in January, it put the price at $2 billion net of unfunded tenant concessions. In the end, these concessions pushed the sales price to $1.76 billion.

The sale marks New York’s largest commercial real estate deal of 2016 to-date. The runner up is 1285 Sixth Avenue, which RXR Realty, David Werner Real Estate and China Life bought for $1.65 billion in May. Also in May, Saudi-based Olayan Group bought the Sopny Building at 550 Madison Avenue from Clipper Equity and the Chetrit Group for $1.4 billion. Both deals were first reported by TRD.

MENU