By Paul Rosta, Senior Editor<\/p>\n
SL Green Realty Corp. confirmed reports Thursday morning that it has completed the sale of the tallest New York City building outside of Manhattan, the 1.4 million-square foot Queens office tower known as the Citigroup building. A joint venture of Paramount Group Inc. and Colony Capital L.LC., bought the property for $481 million. As part of the transaction, the buyers will also assume $315 million of debt.<\/p>\n
SL Green, which had a 30 percent ownership stake in the property, reported that it garnered about $44 million in proceeds from the deal. The Manhattan-based REIT owned the property in joint venture with JPMorgan Chase & Co. The transaction had a somewhat lengthy gestation period; SL Green initially disclosed that the building was under contract last November.<\/p>\n
Formally known as One Court Square, the building changed hands most recently in 2007. \u00a0SL Green acquired the property early that year when it bought Reckson Associates Realty Corp. for $6 billion, including $2 billion in assumed debt. Designed by Skidmore, Owings & Merrill and completed in 1989, \u00a0One Court Square is located across the East River from Manhattan in Long Island City, a section of Queens. \u00a0The building is fully leased to Citibank N.A. group, which sold the asset to Reckson in 2005 for about $470 million.<\/p>\n
In a statement Wednesday afternoon, Cushman & Wakefield Inc. said that had arranged preferred equity for Paramount and Colony. \u201cThe investment features a bond-like income stream, along with a going-in basis well below replacement cost,\u201d said Helen Hwang, an executive vice president in Cushman & Wakefield\u2019s debt, equity and structured finance group.<\/p>\n","protected":false},"excerpt":{"rendered":"
A joint venture of Paramount Group Inc. and Colony Capital L.L.C. bought the 50-story, 1.4 million-square-foot asset, which is the tallest New York City building outside of Manhattan.<\/p>\n","protected":false},"author":445,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37774,21825,37775,21783,21742,10,21747,37776,37777,37778],"tags":[],"class_list":["post-1004043348","post","type-post","status-publish","format-standard","hentry","category-rc-dividend-yield","category-finance","category-rc-forward-affo-payout-ratios","category-investment","category-latest","category-northeast","category-office","category-rc-premium-discount-to-nav","category-rc-price-ltm-ffo","category-rc-total-return"],"acf":[],"yoast_head":"\n