Silverstein to pay $170m for Moody's 99 Church St.

Silverstein Properties and its joint venture partner, the California State Teachers' Retirement System (CalSTRS), has entered into contract with Moody's Corporation to purchase Moody's corporate headquarters building at 99 Church Street in downtown Manhattan for $170 million. The companies expect to complete the transaction in mid-December.

The deal to purchase 99 Church Street marks the second investment under a new joint venture between CalSTRS, a pension fund, and Silverstein Properties. The partnership provides Silverstein Properties with up to $2 billion in buying power to be used for acquisition purposes in the tri-state area. The partnership acquired 575 Lexington Avenue in October.

As part of the sale, Moody's will continue to occupy the approximately 441,000-square-foot, 11-story office building at 99 Church Street until the company relocates to its new global headquarters at 7 World Trade Center. The move is expected to be complete within 12 months. In September, Silverstein Properties announced that Moody's signed a 20-year lease to occupy 15 floors of the 52-story 7 World Trade Center at 250 Greenwich Street.

"Downtown Manhattan is being revitalized before our very eyes and has quickly become one of the hottest business and residential markets in the nation," said Larry A. Silverstein, President and CEO of Silverstein Properties. "This transaction, in concert with Moody's prior decision to move its headquarters to 7 World Trade Center, demonstrates that the collective vision for a dynamically revitalized Lower Manhattan is coming to fruition."

CB Richard Ellis brokers William Shanahan and Darcy Stacom represented Moody's Corporation in the transaction.

CalSTRS is advised by CB Richard Ellis Investors, a wholly owned but separately operated subsidiary of CBRE. Vic Bucchere, Managing Director of CB Richard Ellis Investors, said "CalSTRS and Silverstein Properties joint venture investment in 99 Church Street is an exciting opportunity to participate in the revitalization of downtown Manhattan."

Silverstein has committed to the redevelopment of the World Trade Center site. On May 23, 2006, Silverstein Properties opened 7 World Trade Center, a 52-story, 1.7 million square foot office tower, at 250 Greenwich Street, just north of the World Trade Center site.

In April, 2006, Silverstein Properties started work on the Freedom Tower. In September, 2006, designs were unveiled for three new office towers on the WTC site--200, 175 and 150 Greenwich Street--that will be developed by Silverstein Properties.

With a $144 billion investment portfolio, the California State Teachers' Retirement System is the second-largest public pension fund in the United States.