SL Green Realty Corp. has entered an agreement to acquire two downtown Manhattan office buildings for approximately $1.6 billion, or $598 per square foot, the company announced today.
The buildings, which are adjacent and total more than 2.6 million square feet, will be occupied by a financial services tenant under the terms of a 13-year triple-net lease that provides for annual rental increases. The initial rental payments will provide a 6.3 percent un-leveraged return on the purchase price, the company said.
SL Green also announced that it has entered into an agreement with SITQ to form a joint venture simultaneously with the closing of the acquisitions, with SL Green having a 52.5 percent interest and SITQ having a 47.5 percent interest.
The transaction, which is subject to customary closing conditions, is expected to close this month.
SL Green Realty Corp. is a self-administered and self-managed real estate investment trust focused on Manhattan office properties.