Week of buying and selling at SL Green.

SL Green's founder and chairman, Steve Green has had a busy week. After announcing he would buy rogue radio station, Air America, the office REIT boss confirmed sales of One Park Avenue, for $602 per square foot, and 70 West 36th Street for $393 per square foot, as well as the $450 million refinancing at 485 Lexington.

SL Green completed a refinancing of the first mortgage loan on 485 Lex with a 10-year interest only mortgage with effective interest rate of 5.566%. The mortgage matures in January 2017.

When it bought the 31-story, 926,000 s/f asset in 2004 with its joint venture partners for $225 million, SL Green embarked upon an intensive multi-million dollar capital repositioning program and a strategic leasing and marketing effort to re-brand the property together with 750 Third Avenue as "Grand Central Square."

The success of the redevelopment and leasing campaigns was soon evidenced by the addition of top-caliber tenants, including Travelers, Citibank and Novantas, to the tenant roster. As a direct result of its efforts, in December of 2006, SL Green purchased interests in 485 Lexington Avenue from its partners, The City Investment Fund (CIF) and The Witkoff Group, resulting in a majority ownership and control of the property.

The transaction valued the property at $578 million or approximately $630 per square foot.

In addition to this recognition of value in the property, the success of SL Green's repositioning efforts is evidenced by a 90% occupancy at the property and moreover, its superior execution of the long-term, best in market financing with top-tier originators led by Wachovia along with Morgan Stanley and Credit Suisse.

Marc Holliday, president & COE of SL Green said the financing would free up a considerable amount of cash to put back to work for our shareholders.

"In less than three years of ownership, we have nearly tripled 485 Lexington's market value while cementing our dominant position as Manhattan's largest landlord," he added. Sonnenblick Goldman acted as the exclusive financial advisors to SL Green.

Meanwhile, the REIT continued to chip away at its plan to divest itself of non-core assets with the sale of 70 West 36th Street for $61.5 million, or $393 per square foot. The Company expects to realize a gain on this sale of approximately $50.2 million.

The 156,532 s/f office property was contributed to the SL Green portfolio during the Company's IPO for approximately $9.35 million. From 1997 to 1998, 70 West 36th Street was the headquarters of SL Green Realty Corp.

Since its contribution, SL Green employed a renovation program and the property is now 100% leased.

Andrew Mathias, chief investment officer of SL Green Realty Corp., said, "The key to delivering greater value to our shareholders will be sheltering gains from sales via tax efficient exchanges.

"With the sale of 70 West 36th Street, we are doing exactly that: proceeds will be deployed into the recently acquired Reckson Portfolio."

Rich Baxter and Ron Cohen of Cushman & Wakefield represented SL Green in the transaction.

SL Green also confirmed the previously reported sale of One Park Avenue. Along with partners SITQ Group, a subsidiary of Caisse de depot et placement du Quebec, and SEB Immobilien-Investment GmbH, it has sold the tower for $550 million.

SL Green expects to receive approximately $108 million in proceeds from the sale, a substantial portion of which will represent an incentive distribution under its joint venture arrangement with SEB.

The proceeds will be utilized in a tax efficient 1031-exchange to acquire certain assets from Reckson Associates Realty Corp.

Darcy Stacom and William Shanahan of CB Richard Ellis represented the joint venture in the transaction.