{"id":1004142530,"date":"2016-04-21T23:17:15","date_gmt":"2016-04-22T07:17:15","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004142530"},"modified":"2020-05-11T22:54:13","modified_gmt":"2020-05-12T06:54:13","slug":"sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\/","title":{"rendered":"SL Green, Citigroup Push Up Sale of NYC\u2019s 388-390 Greenwich St."},"content":{"rendered":"<p><em>By Gail Kalinoski<\/em><\/p>\n<div id=\"attachment_1004142546\" style=\"width: 310px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004142546\" data-attachment-id=\"1004142546\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\/388-390green5wichstreet\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg\" data-orig-size=\"1469,802\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Ioana Neamt&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1461319435&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"388-390Green5wichStreet\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg?w=1024\" class=\"wp-image-1004142546 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg\" alt=\"388-390 Greenwich St., New York\" width=\"300\" height=\"164\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg 1469w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg?resize=300,164 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg?resize=768,419 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg?resize=1024,559 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004142546\" class=\"wp-caption-text\">388-390 Greenwich St., New York<\/p><\/div>\n<p><strong>New York<\/strong>\u2014<a href=\"https:\/\/slgreen.com\/about\/\" rel=\"nofollow\" target=\"_blank\">SL Green Realty Corp.<\/a> and <a href=\"https:\/\/www.citigroup.com\/citi\/\" rel=\"nofollow\" target=\"_blank\">Citigroup Inc.<\/a> have agreed to speed up the $2 billion sale of 388-390 Greenwich St. in downtown Manhattan by more than a year and it appears to be a win-win for both. Citigroup is saying the earlier purchase will result in \u201csignificant cost savings\u201d and SL Green plans to pay off the mortgage on the 2.6 million-square-foot property early.<\/p>\n<p>The deal will now close in June instead of December 2017 as the two firms had previously <a href=\"https:\/\/www.commercialsearch.com\/news\/citigroup-takes-back-tribeca-hq-for-2b\/\" target=\"_blank\">announced in January.<\/a> In a cost-cutting move, Citigroup had said earlier this year it wanted to consolidate its offices in Downtown Manhattan and move its global headquarters at 399 Park Ave. to 388-390 Greenwich St. The property had been triple-net leased to an affiliate of Citigroup through 2035. The banking giant had an option in its $1 billion lease with SL Green to acquire the property up until Dec. 31, 2020.<\/p>\n<p>In addition to the purchase price, Citigroup will pay SL Green $94 million for ending its lease early.<\/p>\n<p>SL Green, New York City\u2019s largest office landlord, said it will realize approximately $1.8 billion from the deal, including the lease termination fee. The REIT plans to use the proceeds of the sale and termination payment to repay part of its corporate credit facility and retire the $1.45 billion mortgage on the property.<\/p>\n<p>\u201cWe are pleased to reach an agreement on the early sale of 388-390 Greenwich Street. In addition, by retiring approximately $1.8 billion of debt, we further strengthen our balance sheet and enhance our liquidity position to in excess of $1.4 billion,\u201d SL Green CEO Marc Holliday said in a prepared statement.<\/p>\n<p>SL Green has owned the property since late 2007, when it acquired it with an affiliate of Ivanhoe Cambridge. <a href=\"https:\/\/www.commercialsearch.com\/news\/sl-green-buys-ivanhoe-cambridges-stake-in-nyc-citigroup-hq\/\" target=\"_blank\">Seven years later<\/a>, SL Green bought Ivanhoe\u2019s 49 percent stake in the asset that was valued at $1.6 billion at that time.<\/p>\n<p>Citigroup said in January it planned a major remodeling at the property, including integrating the two buildings into one with a curtain-walled makeover and a single lobby \u201ctown square,\u201d rooftop terrace, new cafeteria and fitness center. The renovations are expected to be completed by 2019 and the building will be LEED certified.<\/p>\n<p>A Citigroup spokesman <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2016-04-20\/citigroup-to-accelerate-purchase-of-tribeca-headquarters-complex\" rel=\"nofollow\" target=\"_blank\">told Bloomberg<\/a> in an emailed statement that the plan was to modernize and unify the buildings, which are now the company\u2019s global headquarters.<\/p>\n<p>\u201cAccelerating the purchase of these buildings will result in a significant cost savings. We look forward to completing the renovations to further deepen our ties to lower Manhattan, where our company was founded more than 200 years ago,\u201d the spokesman said.<\/p>\n<p>The agreement to move up the sale of 388-390 Greenwich St. is just one of several dispositions the REIT has completed or announced in recent months, according to the company\u2019s first quarter 2016 financial results released Wednesday.<\/p>\n<p>SL Green, which also owns interests in 31 suburban buildings in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey, said this week it had reached an agreement to sell 500 West Putnam Ave., a 121,500-square-foot office property in Greenwich, Conn., for $41 million. The deal is expected to close in the second quarter. Jeff Dunne of CBRE represented SL Green in the transaction.<\/p>\n<p>Isaac Zion, the REIT\u2019s co-chief investment officer, said the sale is a \u201ccontinuation of our plan to strategically monetize assets that are not core to SL Green and generate incremental equity proceeds that can be applied to the company\u2019s balance sheet.\u201d<\/p>\n<p>Other recent deals included the March sale of 7 Renaissance Square, a 65,600-square-foot office building at the Ritz Carlton complex in downtown White Plains, N.Y. SL Green and its joint venture partner, Renaissance Office Partners LLC, sold the building for $20.7 million.<\/p>\n<p>In February, the company closed on the sale of the leased fee interest in 885 Third Ave. in Manhattan, also known as \u201cThe Lipstick Building,\u201d for $453 million. The deal for the 34-story office tower was <a href=\"https:\/\/www.commercialsearch.com\/news\/sl-green-selling-spree-continues\/\" target=\"_blank\">announced in October<\/a>. The company said it retained a 5.7 percent senior equity investment valued at $135 million in the property.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SL Green and Citigroup are speeding up the $2 billion sale of 388-390 Greenwich St.<\/p>\n","protected":false},"author":1068,"featured_media":1004142546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,21783,1600,21742,10,21747],"tags":[],"class_list":["post-1004142530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-investment","category-new-york","category-latest","category-northeast","category-office"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SL Green, Citigroup Push Up Sale of NYC\u2019s 388-390 Greenwich St. - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SL Green, Citigroup Push Up Sale of NYC\u2019s 388-390 Greenwich St.\" \/>\n<meta property=\"og:description\" content=\"SL Green and Citigroup are speeding up the $2 billion sale of 388-390 Greenwich St.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-04-22T07:17:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-12T06:54:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/04\/388-390Green5wichStreet.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1469\" \/>\n\t<meta property=\"og:image:height\" content=\"802\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/\"},\"author\":{\"name\":\"Gail Kalinoski\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/fc5b5df1393e5023d2417bd48c2fda57\"},\"headline\":\"SL Green, Citigroup Push Up Sale of NYC\u2019s 388-390 Greenwich St.\",\"datePublished\":\"2016-04-22T07:17:15+00:00\",\"dateModified\":\"2020-05-12T06:54:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/\"},\"wordCount\":683,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2016\\\/04\\\/388-390Green5wichStreet.jpg\",\"articleSection\":[\"Deals\",\"Featured\",\"Finance\",\"Investment\",\"New York\",\"News\",\"Northeast\",\"Office\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/sl-green-citigroup-push-up-sale-of-nycs-388-390-greenwich-st\\\/\",\"name\":\"SL Green, Citigroup Push Up Sale of NYC\u2019s 388-390 Greenwich St. - 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Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. 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