SL Green makes record acquisition with $1.4bn in financing

SL Green announced this week that it has closed on its $2.285bn acquisition of 11 Madison Avenue in Manhattan, among the city’s largest real estate deals ever.

SL Green announced this week that it has closed on its $2.285bn acquisition of 11 Madison Avenue in Manhattan, among the city’s largest real estate deals ever.

The acquisition was financed with $1.4bn of 10-year, interest only, fixed-rate financing, with a 3.838% interest rate, from Deutsche Bank, Morgan Stanley and Wells Fargo.

The company agreed to purchase the asset from CIM Group and the Sapir Organization in May, previously stating its intention to fund the record purchase through a “strategic combination of property sales, joint ventures, new financing and existing property debt refinancings, while retaining cash for other investments in the pipeline.”

That included the $365m sale of Tower 45, a 440,000 sq foot office building at 120 West 45th Street; and 131-137 Spring Street for $222m.

The 2.3m sq ft, 30-story skyscraper at 11 Madison serves as the US headquarters of Sony and Credit Suisse AG. SL Green has reserved an additional $300m for improvements to the property.

The real estate investment trust is New York City’s largest office landlord, primarily focused on acquiring and Manhattan commercial properties. As of June 30, 2015, the company held interests in 120 Manhattan buildings totaling 44.1m sq ft, including ownership interests in 29m sq ft of commercial buildings and debt and preferred equity investments secured by 15.1m sq ft of buildings.

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