SL Green Takes Ownership of NY Property
SL Green Realty Corp., a self-management real estate investment trust, is now the sole owner of 100 Church St., a 1.05-million-square-foot office tower located in Lower Manhattan, following the successful foreclosure of the senior mezzanine loan at the property.
SL Green’s initial investment was comprised of a 50% interest in the senior mezzanine loan and two other mezzanine loans at 100 Church St., which it acquired from Gramercy Capital Corp. in the summer of 2007.
As part of a consensual arrangement reached with the then-current owners in August 2009, SL Green, on behalf of the mezzanine lender, obtained management and leasing control of the property.
At closing of the foreclosure, the company funded additional capital into the project as part of its agreement with Wachovia Bank NA to extend and restructure the existing financing for a new four year term. Gramercy declined to fund its share of this capital and instead entered into a transaction whereby it transferred its interests in the investment to SL Green at closing, subject to certain future contingent payments.
A Newmark Knight Frank team led by James Kuhn and Brian Waterman has already initiated an aggressive leasing program for the building and will continue to work with SL Green’s staff to increase occupancy at the currently 58% vacant building.
SL Green also intends to commence an extensive lobby renovation and other property improvements. The property will be operated by SL Green’s in-house management team.
“We’re pleased that we can take ownership of an office property with such great potential,” said Andrew Mathias, president and chief investment officer of SL Green.
“The building is well-situated in one of Downtown/Tribeca’s best locations and offers a substantial block of available space with large floor plates. SL Green has a long track record of successfully leasing up previously underperforming properties and we view this as a great opportunity to once again demonstrate the success of our targeted leasing and repositioning capabilities.”