SL Green Buying NYC RE

SL Green Realty Corp., New York, is acquiring One Madison Avenue in Midtown Manhattan for $918 million from Metropolitan Life Insurance.The property consists of two buildings totaling 1.4 million square feet, the real estate investment trust reports, and SL Green plans to convert one of the buildings -- a 41-story property with 267,000 square feet -- into residential condominium units. The other building, consisting of about 1.2 million square feet, is 95.5% net leased to Credit Suisse First Boston, SL Green said. CSFB is also providing debt financing for the acquisition. SL Green intends to tap $805 million in financing to fund the acquisition and development of the property and has so far obtained $690 million in fixed-rate financing, according to the REIT. The "air rights" associated with the property also could allow for the development of another 470,000 square feet of additional space, SL Green believes. The acquisition is in keeping with the REIT's strategy of "capitalizing on corporate divestitures of real estate," according to SL Green.