From the May issue: As the commercial credit crisis kicks into
high gear in the New York market, SL Green, the city’s largest
commercial landlord, has found itself in the center of a growing storm.
The publicly traded investment trust, which owns 29 office buildings in
Manhattan alone, is facing the sudden reality of holding billions of
dollars in commercial debt in a real estate market that is rapidly
declining. After years of making highly leveraged deals, led by the
mammoth $6 billion acquisition of rival real estate investment trust
Reckson Associates in 2007, the company is now awash in a sea of debt.
What’s worse, it’s on a ship that is leaking revenue in the form of
dropping commercial rents. [more]