LOS ANGELES — SL Green Realty Corp. has agreed to sell its 43.74 percent interest in a Southern California office portfolio to an affiliate of joint venture partner Blackstone Real Estate Partners VII for $100 million. The fund will now take full ownership of the portfolio.
The portfolio consists of 28 properties totaling 3.7 million square feet located throughout the submarkets of Los Angeles, Orange County and San Diego counties. It was originally part of a 31-property, 4.5 million-square-foot portfolio that SL Green acquired through foreclosure. That portfolio was eventually recapitalized and the financing was restructured.
SL Green went on to form a new partnership with Blackstone while acquiring the other two minority partners’ interests. SL Green sold three of those properties for $223 million. Blackstone’s affiliate, Equity Office Properties, launched a successful capital improvement and lease-up program at the remaining properties.