The Real Deal New York

SL Green, Vornado take control at 280 Park

May 18, 2011 02:33PM

From left: SL Green CEO Marc Holliday, 280 Park Avenue (building photo source: PropertyShark), and Vornado Chairman Steven Roth

SL Green Realty and Vornado Realty Trust’s recapitalization deal at 280 Park Avenue is official, and involved the acquisition of “a significant majority stake” in the 41-story property, according to Crain’s. In March, the two landlords combined their $400 million worth of debt positions in the 1.2 million-square-foot office building into a 50/50 joint venture after it was revealed that owner Broadway Partners was running short on reserves and had begun seeking a capital infusion. They’ll pour $150 million into luring new tenants to the increasingly vacant building, and sources have speculated that they will also put up additional funds for upgrades. Meanwhile, Broadway Partners will retain an ownership stake and will also put up additional capital, but Investcorp, Broadway’s original ownership partner, is out with an option to invest in the property in the future. Broadway Partners and Investcorp purchased 280 Park Avenue for $1.2 billion in 2007. Deutsche Bank recently left its 340,000 square feet of office space there, and two more large tenants are slated to ditch the building within the next three years. [Crain’s]


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