SL GREEN/GRAMERCY VENTURE ANNOUNCES $230 MILLION SALE OF NEW JERSEY OFFICE PROPERTY OWNERSHIP INTEREST
New York, NY – December 8, 2008 – (RealEstateRama) – SL Green Realty Corp. (NYSE: SLG) and Gramercy Capital Corp. (NYSE: GKK) today announced an agreement to sell their interests in a three-building, 670,000-square-foot property at 55 Corporate Drive in Bridgewater, N.J. The $230 million transaction, approximately $343 psf, negotiated by Inland Real Estate Acquisitions, Inc. on behalf of Inland American Real Estate Trust, Inc., includes the assumption of an existing $190 million mortgage and is expected to close within the next 60 days subject to customary conditions. The transaction results in a capitalization rate of 6.9% to the seller.
55 Corporate Drive is located on 150 acres at the crossroads of Route 206, I-78 and I-287, and serves as the North American headquarters, under a long-term net lease, for Sanofi-aventis, one of the world’s largest pharmaceutical companies. SL Green purchased and retenanted the property as part of its venture with the Gale Companies. Gramercy acquired its interests from the Gale Companies in 2006, and have been owners through a 50/50 joint venture.
Marc Holliday, Chief Executive Officer of SL Green, stated, “This is a great property in New Jersey’s best suburban location. Its value has held up well, and the fact that our venture is able to sell it despite extremely difficult market conditions demonstrates that fact. This transaction is a good example of SL Green’s historic success in investing successfully outside its core market, creating value and then realizing that value at the right time.”
Andrew Merin and Gary Gabriel from Cushman & Wakefield along with the legal team from Greenberg Traurig represented the SL Green/Gramercy venture in the transaction.
Joseph Cosenza, President of Inland Real Estate Acquisitions, Inc., along with the legal team of Peter Harsy and Gary Pechter of the Inland Real Estate Group, Inc., represented Inland American in the transaction.
About SL Green Realty Corp.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust, or REIT, that predominantly acquires, owns, repositions and manages Manhattan office properties. The Company is the only publicly held REIT that specializes in this niche. As of September 30, 2008, the Company owned 30 New York City office properties totaling approximately 23,719,200 square feet, making it New York’s largest office landlord. In addition, at September 30, 2008, SL Green held investment interests in, among other things, eight retail properties encompassing approximately 400,212 square feet, two development properties encompassing approximately 363,000 square feet and two land interests, along with ownership interests in 36 suburban assets totaling 7,867,500 square feet in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey.
To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at 212-216-1601.
About Gramercy Capital Corp.
Gramercy Capital Corp. is an integrated commercial real estate finance and property investment company operating in two complementary areas: Gramercy Finance, which focuses on the direct origination and acquisition of whole loans, subordinate interests in whole loans, mezzanine loans, preferred equity, CMBS and other real estate securities; and Gramercy Realty, which focuses on the acquisition and management of commercial properties net leased primarily to regulated financial institutions and affiliated users throughout the United States. Gramercy is externally-managed by GKK Manager LLC, which is a majority-owned subsidiary of SL Green Realty Corp. (NYSE: SLG). Gramercy is headquartered in New York City, and has regional investment and portfolio management offices in Los Angeles, California, Jenkintown, Pennsylvania, and Charlotte, North Carolina.
Forward-looking Information
This press release contains forward-looking information based upon the companies current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include the strength of the commercial office real estate markets in New York, reduced demand for office space, unanticipated increases in financing and other costs, competitive market conditions, unanticipated administrative costs, timing of leasing income, general and local economic conditions, interest rates, capital and credit market conditions, tenant or borrower bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, environment, regulatory and/or safety requirements and other factors, which are beyond the companies control. The companies undertake no obligation to publicly update or revise any of the forward-looking information. For further information, please refer to each company’s filings with the Securities and Exchange Commission.
CONTACT:
SL Green Realty Corp.
Gregory Hughes
Chief Financial Officer & Chief Operating Officer
Or
Heidi Gillette
Director, Investor Relations
212.594.2700
Gramercy Capital Corp.
John Roche
Chief Financial Officer
Or
Laura Godfrey
Investor Relations
212.297.1000
