SL Green in joint venture to buy 1250 Broadway

Real Estate Weekly, Nov 14, 2001

SL Green Realty Corp. has entered into a joint venture on 1250 Broadway with SITQ Immobilier, a subsidiary of Caisse de depot et placement du Quebec, Canada's leading fund manager with over Canadian $100 billion in assets under management.

Under the terms of the joint venture, SITQ Immobilier has purchased a 45% interest in the property yielding proceeds of approximately $22 million, inclusive of closing costs and reimbursements and subject to $85 million of first mortgage financing from Salomon Brothers. The transaction enables SL Green to bring in a long-term partner in a core asset while freeing up capital for additional high growth opportunities and enhancing its yield on investment through fees earned in management, leasing and redevelopment of the asset.

1250 Broadway is a 39-story building with approximately 685,000 SF, and occupies the block front between 31St and 32nd Streets on Broadway. It is currently 99.6% occupied, including the recently announced major lease transaction by Visiting Nurse Services committing to an additional 80,000 SF of expansion space.

Stonehenge Partners advised SITQ Immobilier on this transaction. SL Green was advised by Schonbraun, Safris, McCann and Bekritsky & Co., L.L.C.