SL Green to sell $1B-plus worth of properties to finance 11 Madison buy

Possible sales include 885 Third Avenue, 131 Spring Street: SEC filing

TRD New York /
Jun.June 10, 2015 08:00 AM

SL Green Realty intends to sell at least $1.1 billion worth of properties over the coming months to finance its acquisition of 11 Madison Avenue, according to documents filed with the Securities Exchange Commission  Tuesday.

The real estate investment trust went into contract to buy the 2.3 million-square-foot Art Deco office tower in NoMad for $2.6 billion — $2.29 billion plus $300 million in lease-stipulated building improvements — from CIM Group and the Sapir Organization last month. The deal is expected to close in the third quarter, giving SL Green several months to secure financing.

In a form 8-K, which public companies are required to file in case of a major shareholder event, SL Green outlined its financing strategy for the acquisition. The REIT plans to take out a $1.3 to $1.4 billion fixed-rate mortgage with a 10-year term, and rake in a further $300 million by refinancing other properties. Planned asset sales and recapitalizations could add another $1.1 to $1.2 billion, according to the filing, bringing the total volume of funding to $2.8 billion.

The REIT’s filing lists 11 properties that could be sold, with a total value of up to $2.13 billion, including the Manhattan office buildings 120 West 45th Street609 Fifth Avenue and 885 Third Avenue, as well as 131-137 Spring Street in Soho, which is reportedly being marketed for $300 million.


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green puts Daily News building up for sale
SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt
SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site
Isaac Zion

SL Green’s co-CIO leaving firm

SL Green’s co-CIO leaving firm
SL Green CEO Marc Holliday, One Madison Avenue and Hines Group CEO Jeffrey Hines (SL Green; Hines via Sanjeev Verma/Hindustan Times via Getty Images)

SL Green sells half of One Madison to Hines, NPS of Korea

SL Green sells half of One Madison to Hines, NPS of Korea
SL Green CEO Marc Holliday and CFO Matthew DiLiberto (Credit: SL Green)

SL Green preparing $1B coronavirus cushion

SL Green preparing $1B coronavirus cushion
SL Green's Mark Holliday with Industry City in Brooklyn and 95 Morton Street (Credit: Industry City; SL Green; Google Maps)

SL Green in talks to sell loans to CIM, Rockwood

SL Green in talks to sell loans to CIM, Rockwood
10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Sl Green)

SL Green snags $220M refi for Midtown East office tower

SL Green snags $220M refi for Midtown East office tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...