SL Green, Vornado to take stake in 280 Park

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

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SL Green Realty and Vornado Realty Trust have reached a preliminary agreement to recapitalize 280 Park Avenue in exchange for a stake in the 41-story building, according to Crain’s. The two landlords last month combined their debt positions in the property into a 50/50 joint venture after news broke that the ownership was seeking a capital infusion. It’s unclear how much capital the two real estate investment trusts might inject into the 1.2 million-square-foot building, which Broadway Partners and Investcorp purchased for $1.2 billion in 2007, and the deal could still fall through. Payments for its $440 million in outstanding securitized debt are still current, but reserves have dwindled to just $36 million. Meanwhile, 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]