REIT Buying 2 NYC Office Properties

SL Green Realty Corp., New York, is acquiring The News Building in Midtown Manhattan for $265 million ($242 per square foot) and “condominium interests” in 125 Broad Street in Downtown Manhattan for $90 million ($172 per square foot).Both acquisitions are being made from affiliates of The Witkoff Group, SL Green said. In connection with the transactions, SL Green, an office real estate investment trust, has closed a $150 million, unsecured, five-year term facility with Wells Fargo Bank. The REIT is accessing a variety of funding sources to buy the 1.1 million-square-foot News Building: the assumption of $186 million of floating-rate debt; the redemption of SL Green’s existing $53.5 million preferred equity investment; and the issuance of up to $13 million of units in SL Green Operating Partnership to Steven Witkoff, president and chief executive officer of The Witkoff Group. The balance will come from the REIT’s line of credit. For the acquisition of the 524,500-square-foot 125 Broad Street, SL Green is assuming $78 million of fixed-rate mortgage financing, issuing up to $2 million of units in the SL Green Operating Partnership, and accessing the REIT’s line of credit.