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NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG), a real estate investment trust (REIT) and New York City’s largest office landlord, has agreed to acquire Ivanhoe Cambridge’s stake in the 2.6 million-square-foot office headquarters of Citigroup Inc. in New York City. The office campus is located at 388-390 Greenwich St. in Manhattan’s Tribeca neighborhood.

The transaction values the consolidated interest investment at nearly $1.6 billion. The deal is expected to close in the second quarter of this year.

“We have enjoyed a successful partnership with Ivanhoe Cambridge at 388-390 Greenwich, capped by Citigroup’s recent lease extension, which was one of the largest lease transactions ever executed in New York,” says Andrew Mathias, president of SL Green.

The 388 Greenwich building is a 39-story tower with unobstructed views of Manhattan’s skyline and the Hudson River. 390 Greenwich is an eight-story property that features 94,000-square-foot trading floors.

The office campus is leased to an affiliate of Citigroup Inc., a leading global bank with 200 million customer accounts, through 2035. The lease agreement includes an option for Citigroup to acquire the Tribeca campus during a three-year window from Dec. 1, 2017 to Dec. 1, 2020. Citigroup does business in more than 160 countries and jurisdictions, according to the company’s website.

“Citigroup is one of the world’s great financial institutions and has been a valued tenant at several SL Green properties,” says Mathias. “We look forward to an ongoing strong relationship with Ivanhoe Cambridge and Citi as we continue to grow as New York City’s larges landlord.”

SL Green and an affiliate of Ivanhoe Cambridge acquired 388-390 Greenwich St. in late 2007. Callahan Capital Properties served as an advisor to Ivanhoe Cambridge for the transaction.

As of Dec. 31, 2013, SL Green owned interests in 92 Manhattan buildings totaling 44.4 million square feet. SL Green’s stock price closed Friday, Feb. 28 at $99.33 per share, up from $82.77 per share at this time last year.

— John Nelson

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