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SL Green partnership sells 180 Mad. Ave. for $92m.

A joint venture comprised of SL Green Realty Corp. and Morgan Stanley Real Estate Fund III, L.P. has entered into an agreement to sell the fee interest in 180 Madison Avenue for $92.7 million, or approximately $350 per square foot.

The joint venture purchased the asset in December 2000 for $41.2 million and expects to recognize a gain of approximately $40 million from the sale.

After giving effect to SL Green's incentive fees within the joint venture, the Company is entitled to 68% of all cash proceeds in excess of debt repayment.

180 Madison Avenue represents the last property to be sold through SL Green's highly successful joint venture with MSREF. Formed in 1999, the joint venture completed four acquisitions totaling $150 million.

Properties jointly bought and sold have included 90 Broad Street, 469 7th Avenue, 321 West 44th Street and finally 180 Madison Avenue.

The partners continue to pursue opportunities through a second joint venture between SL Green and the City Investment Fund, an affiliate of MSREF. Acquisitions under the new joint venture arrangement include 19 West 44th Street and 485 Lexington Avenue.

Marc Holliday, President and Chief Executive Officer of SL Green said, "The sale of 180 Madison will allow SL Green to realize significant gains from the final transaction in our highly successful joint venture with Morgan Stanley Real Estate. We look forward to continuing our relationship with Morgan Stanley through the City Investment Fund."

Michael Franco, Managing Director and Head of MSREF Domestic, said, "SL Green's track record of successful, profitable transactions and its specific expertise in the New York City office market have been a great complement to our investment strategy.

"The success of our joint venture underscores our combined strengths, and we look forward to continuing to invest alongside SL Green going forward."

Brian Ezratty and Peter Hauspurg of Eastern Consolidated Properties, Inc. and Douglas Harmon of Eastdil Realty represented the seller in the transaction.
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Title Annotation:SL Green Realty Corp.
Publication:Real Estate Weekly
Geographic Code:1USA
Date:Apr 13, 2005
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