The Real Deal New York

SL Green to buy Ivanhoe Cambridge stake in Citigroup HQ

Purchase of 49.4 percent stake gives SL Green full ownership at 388-390 Greenwich Street

March 03, 2014 04:15PM

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388-390 Greenwich Street

388-390 Greenwich Street

SL Green has agreed to pay nearly $800 million for Ivanhoe Camrbidge’s stake in 388-390 Greenwich Street, where Citigroup’s headquarters are located.

The firm will plunk down $783 million for a 49.4 percent stake in the 2.6 million-square-foot office building, the New York Observer reported. Following the purchase, SL Green will hold full ownership of the building, for which the consolidated investment is valued at $1.58 billion. “We have enjoyed a successful partnership with Ivanhoe Cambridge at 388-390 Greenwich, capped by Citi’s recent lease extension, which was one of the largest lease transactions ever executed in New York,” Andrew Mathias, president of SL Green, said in a prepared statement. “Citi is one of the world’s great financial institutions and has been a valued tenant at several SL Green properties.”

Currently in a triple-net lease to Citigroup through 2035, the property was considered a frontrunner in Citi’s long search for a new nerve center. The complex is the largest in SL Green’s sizable portfolio. Citi owned the complex until SL Green and Ivanhoe Cambridge, the real estate arm of Quebec’s public pension manager, bought it for nearly $1.6 billion in 2007. [NYO]Julie Strickland

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