SL Green Realty Corp

Real Estate Weekly, Sept 27, 2000

SL Green Realty Corp. has entered into an agreement to purchase 1370 Broadway, a 16-story, 254,573-square-foot office building located in the heart of the Times Square South submarket.

The property is located directly across the street from 1372 Broadway, another SL Green building, thereby further expanding the Company's presence on this midtown Manhattan Street corner to nearly 800,000 square feet. In-place rents at the property are approximately $27.75 per square foot, approximately 38% below current market levels.

SL Green will also sell its building located at 17 Battery Place South, a condominium unit in the city's financial district.

Under the terms of the agreements, SL Green will purchase 1370 Broadway for $50.5 million, while receiving $53.0 million for 17 Battery Place South. As the proceeds from 17 Battery Place South will be redeployed into the 1370 Broadway acquisition, the Company intends to effect a Section 1031 tax-free exchange, thereby deferring capital gain resulting from sale. The coordination of the transactions will allow SL Green to purchase 1370 Broadway without mortgage debt while leaving the Company's line of credit resources undiminished.