Printer Friendly

SL Green Realty acquires Grand Central landmark.

In a major purchase of one of the Grand Central District's most famous buildings, S.L. Green Realty Corp. has completed the acquisition of the 250,000 square-foot property at 110 East 42nd Street (formerly known as the Bowery Savings Bank) for a purchase price of $30 million in cash.

The property's previous owner was 110 East 42nd Street Associates, LP, the principal of which is John Kluge. Funds for the acquisition were generated from the S.L. Green's recent initial public offering, through which it raised approximately $244 million in gross cash proceeds through the sale of 11.6 million shares of common stock.

The property, which consists of a five-story historic banking facility and adjoining 18-story office building, is located across the street from Grand Central Station which is currently undergoing a $176 million renovation and retail positioning.

While the property is presently 93 percent occupied (including tenants such as Greenpoint Savings Bank, Major League Soccer and Morgan, Lewis & Bockius), management of S.L. Green anticipates significant upside financial returns for the Company when the lease on 40,000 square feet of retail space expires during the fourth quarter of 1998, as well as through the leasing of the balance of vacant space.

Commenting on the acquisition, Stephen L. Green, chairman and CEO of S.L. Green, said "We are delighted to have been able to complete the acquisition of 110 East 42nd Street, right in the heart of Midtown Manhattan and in the Grand Central Station area, one of New York City's most exciting, re-emerging sub-markets. The transaction, which was made possible by our recent successful public offering, is in keeping with our strategy of owning, managing, leasing, acquiring and repositioning a variety of Class B office properties in Manhattan. In fact, S.L Green is currently the only publicly traded real estate company to invest primarily in Manhattan office properties. Subsequent to the acquisition, S.L. Green's portfolio consists of 10 properties, encompassing more than 2.4 million rentable square feet."

Class B office properties describe those which are typically more than 25 years old but which are in good physical condition, enjoy widespread acceptance by high-quality tenants and are situated in desirable locations in Manhattan. Class B office properties can be distinguished from Class A properties in that Class A properties are generally newer properties with higher finishes and obtain the highest rental rates within their markets.
COPYRIGHT 1997 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:S.L. Green Real Estate Inc. buys Bowery Savings Bank building
Publication:Real Estate Weekly
Date:Oct 15, 1997
Previous Article:Luxury rental is underway.
Next Article:Two Rector Street sold.

Related Articles
SL Green acquires Midtown landmark.
SL Green to acquire Reckson's Class B portfolio in Manhattan.
Tower portfolio acquisition completed.
SL Green now controls 555 W. 57th.
SL Green sells two properties; adds 100 Park in joint venture.
$39-a-foot in Midtown? A REIT snaps it up.
S.L Green completes 6 Times Square renovation.
SL Green ramps up portfolio with series of midtown deals.
SL Green ponders its options for Grand Central portfolio.
Mighty SL Green at top of its game.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters