A joint venture between SL Green and SITQ closed on the acquisition of two downtown Manhattan, N.Y., office buildings – at 388 and 390 Greenwich St. — for $1.575 billion, or $598 per square foot.
The buildings, which are adjacent and total over 2.6 million square feet, were 100 percent occupied at closing by Citigroup, which will remain in place under the terms of a 13-year triple-net lease that provides for annual rental increases.
Under the joint venture, SL Green has a 50.6 percent interest and SITQ has a 49.4 percent interest. The investment is immediately accretive to SL Green’s earnings and was structured in a tax efficient manner in order to reinvest proceeds from the intended sale of 1250 Broadway in accordance with 1031 guidelines.
The two buildings, completed in the late 1980s, form a campus located on the Hudson River Waterfront that straddles the thriving Tribeca and World Financial Center submarkets. Amenities at the 40-story 388 Greenwich St. office building include full-service dining facilities, fitness center, medical center, conference center, day care and an outdoor park area. 390 Greenwich St. features 10 stories of trading facilities and offices with floor plates ranging from 72,000 square feet to more than 93,000 square feet.