Jones Lang LaSalle


SL Green Nails Two NYC Deals: $390M Recapitalization and Lease Expansion
January 24, 2006
By Colleen Corley, News Writer Steven Durels

As a further sign that the New York City office market is as tight as ever, SL Green Realty Corp. said this morning it has completed a pair of unrelated deals: the $390 million recapitalization of 485 Lexington Ave. and the 10-year lease expansion and renewal agreement with Ross Stores Inc. at 1372 Broadway."There's obviously growth by businesses, which everybody loves to see," SL Green Realty executive vice president & director of leasing Steven Durels (pictured) told CPN this afternoon.

"The economy is strong, the leasing market is strong and there's continued demand for space."To preempt future rent increases and to manage occupancy costs, discount apparel retailer Ross Stores increased its space in the building by 35,000 feet, Durels explained. The 534,000-square-foot, 21-story building is also occupied by Ann Taylor Inc. and Intralinks Inc. Cushman & Wakefield Inc. represented the tenants."If I wasn't able to accommodate their growth within the building, they would have had to look outside of the building," he said, noting that the renewal allows the Ross Stores to get its long-term costs under control and secure a strong credit tenant for SL Green Realty.

In the other deal, SL Green Realty and partner The City Investment L.P.'s recapitalization of the 921,000-square-foot building at 485 Lexington Ave. comes 19 months after the joint venture purchased and began repositioning it in 2004. Grand Central Square, located at 750 Third Ave., is anchored by Citibank N.A. with a long-term lease signed in October. A 20 percent increase of SL Green's stake in the Lexington Avenue property was included in the underwriting, provided by HSH Nordbank AG.