NEW YORK, NY – SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, has announced the sale of 16 Court Street, a prominent office building located in downtown Brooklyn. The 317,600 square foot property was sold for a gross price of $171.0 million to CIM Group, a well-known real estate and infrastructure fund manager. The deal, which is subject to standard closing conditions, is anticipated to finalize during the fourth quarter of 2017 and is expected to generate approximately $164.0 million in net cash proceeds for SL Green.
SL Green had initially acquired 16 Court Street Brooklyn in 2007 through a joint venture for $107.5 million, subsequently gaining full ownership in 2013. Recognizing the potential of the 16 Court Street Brooklyn location, SL Green implemented a strategic plan to reposition and enhance the building. This included significant upgrades such as a lobby renovation and elevator modernization, aimed at attracting high-quality tenants and elevating the building’s overall appeal within the competitive Brooklyn office market. These improvements proved successful, as the building currently boasts a strong 94% occupancy rate, demonstrating its desirability and the effectiveness of SL Green’s investment strategy.
Isaac Zion, Co-Chief Investment Officer at SL Green, highlighted the company’s successful foresight and execution in the Brooklyn market. “This transaction underscores SL Green’s strong track record of identifying and unlocking value in New York City office buildings,” Zion stated. “We foresaw the demand for revitalized office product in downtown Brooklyn and are very pleased with the successful execution of our business plan for 16 Court Street Brooklyn.”
The sale of 16 Court Street Brooklyn was facilitated by Darcy Stacom of CBRE, representing SL Green in the transaction. This deal marks another significant transaction in Brooklyn’s burgeoning commercial real estate landscape, further solidifying downtown Brooklyn as a prime location for businesses and investment.
About SL Green Realty Corp.
SL Green Realty Corp., a component of the S&P 500 and the largest office landlord in New York City, is a fully integrated real estate investment trust (REIT). The company focuses on the acquisition, management, and value maximization of commercial properties, primarily in Manhattan. As of June 30, 2017, SL Green held interests in 119 Manhattan buildings, totaling 47.4 million square feet, including ownership of 27.5 million square feet and debt and preferred equity investments secured by 19.9 million square feet. Additionally, SL Green also held ownership interests in 29 suburban buildings across Brooklyn, Long Island, Westchester County, Connecticut, and New Jersey, totaling 4.6 million square feet, demonstrating a broad portfolio across the New York metropolitan area. For more information on SL Green Realty Corp., including the latest news and company information, please visit www.slgreen.com.
Forward-looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such forward-looking statements are not guarantees of future performance and readers are cautioned not to place undue reliance on them. These statements are generally identified by terms such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or similar expressions. Risks and uncertainties that could affect SL Green’s actual results are detailed in the company’s filings with the Securities and Exchange Commission. SL Green undertakes no obligation to update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.
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Source: SL Green Realty Corp.
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