NEW YORK — SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, has reached an agreement with an affiliate of Citigroup Inc. (NYSE: C) to accelerate the sale of the global bank’s office campus at 388-390 Greenwich St. in Manhattan’s Tribeca neighborhood. The early sale is pursuant to the $2 billion purchase option that Citigroup exercised in January. Separately, SL Green announced that it has reached an agreement for the early termination of Citigroup’s lease at the property as a result of the sale acceleration. The sale is now scheduled to close in June. SL Green will realize approximately $1.8 billion in sale proceeds at closing, including the lease termination payment. The REIT plans to repay a portion of its corporate credit facility and retire the $1.45 billion mortgage on the office campus. “We are pleased to reach an agreement on the early sale of 388-390 Greenwich Street. In addition, by retiring approximately $1.8 billion of debt, we further strengthen our balance sheet and enhance our liquidity position to in excess of $1.4 billion,” says Marc Holliday, CEO of SL Green. “Our longstanding, multi-faceted relationship with Citi, one of the world’s leading financial institutions, has been …
NEW YORK CITY — Welltower Inc. (NYSE: HCN) and Hines have purchased a development site at 139 E. 56th St. in Midtown Manhattan for an undisclosed price. The new owners plan to build a 15-story assisted living and memory care community on the site. Design and development plans are in progress and will be released at a later date. One known detail is that the ground floor will contain retail. Eastern Consolidated represented the sellers, Stephen Meringoff and Dennis Riese, the owners of the two existing properties that comprise the site, in the transaction. The existing buildings will be demolished to make way for the new community. This is the first venture into senior living for Hines, an international real estate development, investment and management company. Although the company is based in Houston, this deal was made through the New York office. Toledo, Ohio-based Welltower, meanwhile, is the largest healthcare REIT in the United States by market cap. Formerly known as Health Care REIT, the company was the third-largest owner of seniors housing properties in the country as of June 1, according to the American Seniors Housing Association.
JERSEY CITY, N.J. — BelovED Community Charter School has acquired a half-acre parcel of land located at 535 Grand St. in Jersey City. Friends of the BelovED Charter School, a non-profit organization to support the development of the school and other charter schools, will develop a 40,000-square-foot middle school on the site. The non-profit is expected to obtain a mortgage and construction financing of $12 million from New Jersey Community Capital for the project. Designed by Urbahn Architects, the four-story school will serve 240 students in grades six to nine and feature 15 classrooms, four half classrooms, two science rooms, two art rooms, a music room, a cafetorium with warming kitchen, a gymnasium with a mezzanine, a media center/library, administrative offices and a large sub-dividable multipurpose room, as well as a 31-car parking lot and an outdoor assembly/recreation space.
BASKING RIDGE, N.J. — Daiichi Sankyo Inc. has signed a long-term lease for an office property located at 211 Mount Airy Road in Basking Ridge. The pharmaceutical firm plans to relocate its U.S. headquarters to the three-building campus, which was the former Avaya campus. The property features a full cafeteria, state-of-the-art fitness facilities, a 127-seat auditorium and an on-site conference center. After acquiring the property in 2013, Rubenstein Partners and Onyx Equities upgraded and repositioned the facility for modern office needs.
NEW ROCHELLE, N.Y. — GHP Office Realty has acquired an office building located at 140 Huguenot St. in New Rochelle. The asset sold for $6.4 million. The three-story building features 64,000 square feet of Class A office space, a 34-car on-site parking garage and a 26-car parking lot. At the time of sale, the property was 80 percent occupied by a variety of tenants, including Mary Ann Liebert Inc. and Monroe College. The buyer plans to upgrade the property including building systems, security and cosmetic changes to the façade and lobby. The name of the seller was not released. Elizabeth Smith of Goldberg Weprin Finkle Goldstein provided legal representation, and Ray Cohen of Chicago Title Co. provided title services for GHP in the transaction.
NATICK, MASS. — New Dover Associates has arranged the sale of an office/R&D building located at 2-4 Mercer Road in Natick. Nivek Investments I LLC sold the 17,875-square-foot building to 2-4 Mercer Road LLC for $3.9 million. Situated on 1.4 acres, the building is located within the Natick Business Park. Scott Hughes of New Dover Associates represented the seller and procured the buyer in the transaction.
BOSTON — An affiliate of TIAA has purchased a seven-property office portfolio totaling 408,342 square feet in Boston for $224 million, or approximately $550 per square foot. An account advised by New York-based Clarion Partners was the seller of the portfolio, which is located in the Fort Point Channel neighborhood of Boston’s seaport district. Clarion acquired the offices in 2012 for a combined $129.3 million from an affiliate of New York-based Angelo, Gordon & Co. Properties within the 97 percent leased portfolio are located at 263 Summer St.; 332 and 374 Congress St.; and 33-41, 34, 38 and 44 Farnsworth St. The six offices span between five and nine stories and were built between 1890 and 1920, according to the Boston Business Journal. The portfolio also includes a 16-space parking lot. Originally built in the early 1900s, the properties feature high-quality office space with exposed ceilings and natural lighting. Coleman Benedict and director Ben Sayles led the HFF investment sales team, which represented the seller and procured the buyer. According to the Journal, the Farnsworth Street offices will host General Electric Co. (GE) temporarily while the company builds a permanent headquarters on nearby Necco Ct. “TIAA is one of the …
BOSTON — CBRE/New England has arranged $84.3 million in total financing for Serenity, a to-be-built apartment community in Boston’s Longwood Medical Area. The borrower, Longwood Group, has begun construction on the 195-unit property. John Kelly, Michael Prakken and Sam Dylag of CBRE/NE procured the financing for the borrower. Upon completion, the property will feature one 15-story building with both low- and mid-rise sections and approximately 1,860 square feet of street-level retail space. On-site amenities will include a pool, green roof space, a lounge, billiards rooms, kitchen, fitness center, library and computer room.
JERICHO, N.Y. — Metropolitan Realty Associates LLC and Angelo Gordon & Co. have completed the sale of Jericho Atrium, an office building located at 500 N. Broadway in Jericho. A Long Island-based real estate company purchased the 148,563-square-foot property for $29.7 million. Situated on 8.6 acres, the two-story building features parking for 690 vehicles, a fitness center, conference center and daytime concierge. Notable tenants include American Investment Planners, Clinical Trial Media, NMS Management and Elias Properties. Jose Cruz, Kevin O’Hearn and Evan Pariser of HFF represented the seller in the transaction.
ASHLAND, MASS. — SVN|Parsons Commercial Group|Boston has arranged the sale of an office/retail property located at 200 Homer Ave. in Ashland. WD Homer LLC acquired the property from NEREEF Ashland LLC for $7.8 million. The buyer plans to upgrade the building to attract more businesses to Ashland. Victor Galvani of SVN|Parsons Commercial Group|Boston represented the seller and buyer in the transaction.