SL Green to buy out CPPIB at 600 Lexington

SL Green is buying out the Canada Pension Plan Investment Board’s 45 percent stake in 600 Lexington Avenue, a 36-story, 303,500 sq ft Midtown office building.

SL Green is buying out the Canada Pension Plan Investment Board’s 45 percent stake in 600 Lexington Avenue, a 36-story, 303,500 sq ft Midtown office building.

The joint venture partners bought the property in May 2010 for $193 million. The sale, through which SL Green, New York City’s largest landlord, assumes nearly $114 million of debt, values the property at $284 million.

img4c77f4e22ce11-lsthumbThe debt from Bank of China, with an original principal amount of $125 million, matures in October of 2017. The transaction is expected to close before year-end.

As New York City’s largest office landlord, SL Green, a REIT, held interests in 120 Manhattan buildings totalling 44.1 million sq ft as of 30 June, including interests in 29 million sq ft of commercial buildings plus debt/preferred equity investments secured by 15.1 million sq ft of buildings.

SL Green also has stakes in 37 suburban buildings totalling 5.9m sq ft in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.

Recently the company completed one of the largest deals in the city’s history: the $2.28 billion acquisition of 11 Madison Avenue in Manhattan, which required the sale of several other assets. 

The purchase of 11 Madison Avenue was financed with $1.4 billion of securitised, 10-year, interest-only, fixed-rate finance from Deutsche Bank, Morgan Stanley and Wells Fargo, with an interest rate of 3.83 percent.

 

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