NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has finalized its previously announced purchase of 10 East 53rd Street, a 388,000-square-foot class A office building located in Manhattan, from Cariplo Pension Fund for $252.5 million. The 37-story building is 91 percent leased, and includes tenants such as Harper Collins.
“We believe that the prestige and value of quality properties in the Plaza District of Midtown Manhattan is unparalleled,” said Andrew Mathias, president of SL Green, in a prepared statement. “The chance to add an additional plaza asset to our core portfolio does not come along often and upon being presented with this opportunity, we took it.”
The company has entered into a joint venture agreement with Canada Pension Plan Investment Board (CPPIB), which will be a 45 percent owner. CPPIB has made an equity investment of $57.4 million.
“We are delighted to acquire a significant interest in a high-quality and extremely well-located property that has the potential to be repositioned as a top boutique office property in Midtown Manhattan,” said Peter Ballon, vice president and head of real estate investments for the Americas for CPPIB, in a prepared statement.
Ballon continued, “This expands our portfolio in New York City to interests in five prime office buildings in Manhattan. We are pleased to be partnering once again with SL Green, which has a strong track record of repositioning Midtown office properties.”
As of Dec. 31, 2011, SL Green owned interests in more than 65 Manhattan properties totaling more than 38 million square feet.
SL Green’s share price on Monday, Feb. 27, closed at $75.68, up from $75.13 on Feb. 28, 2011.
— Savannah Duncan