Wells Fargo financing facilitates SL Green’s record 11 Madison buy

Wells Fargo has provided a $140m loan to Invesco Real Estate (IRE) for the acquisition from SL Green of an 80% stake in a mixed-use building in the SoHo neighborhood of Manhattan.

Wells Fargo has provided a $140m loan to Invesco Real Estate (IRE) for the acquisition from SL Green of an 80% stake in a mixed-use building in the SoHo neighborhood of Manhattan. 

IRE paid $222m for its stake in 131-137 Spring Street, city property records confirm, which works out to a 63% loan-to-value. The sale values the property at nearly $278m.

11 Madison Avenue
11 Madison Avenue

The sale also facilitates one of New York City’s largest real estate transactions ever, as it partially funds SL Green’s recent $2.6bn acquisition of 11 Madison Avenue — the US headquarters of Sony and Credit Suisse AG.

SL Green also sold Tower 45, a 440,000 sq foot office building at 120 West 45th Street, for $365m, to use towards the 11 Madison purchase.

The company has stated that it intends to fund the 11 Madison 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.” 

SL Green, a publicly held REIT that acquires, owns, repositions and manages Manhattan office properties, will retain a 20 percent ownership interest in 131-137 Spring Street and will continue to manage and lease the asset. The buyer and any lenders on the Tower 45 were not available by press time.

Wells Fargo and IRE recently teamed up to provide $124m in financing — a $90m senior loan and a $34m mezzanine loan, respectively — to a joint venture led by ViaWest Properties for the acquisition of The Biltmore Financial Center in Phoenix, Arizona, marking one of the highest acquisition prices ever in that city.

 

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