SL Green Extends Mortgage on 220 East 42nd Street

Rhea-AI Summary

SL Green Realty Corp. (NYSE: SLG), Manhattan's largest office landlord, has successfully modified and extended the mortgage on 220 East 42nd Street in partnership with its joint venture partner. The modification includes:

1. A $9.0 million paydown of the principal balance to $496.4 million
2. Extension of the maturity date by over three years, from July 2024 to December 2027
3. Maintenance of the interest rate at 2.75% over term SOFR, fixed at 6.77% through maturity

The 37-story art-deco skyscraper, also known as The Daily News Building, is currently 91% occupied with notable tenants including Visiting Nurse Services, Omnicom Group, United Nations Development Program, and WPIX.

Positive

• Extension of mortgage maturity by over three years to December 2027
• Maintenance of interest rate at 2.75% over term SOFR
• High occupancy rate of 91% for 220 East 42nd Street
• Impressive tenant roster including major organizations

Negative

• Paydown of $9.0 million required to modify and extend the mortgage

NEW YORK, July 30, 2024 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, today announced that, together with its joint venture partner, it has closed on a modification and extension of the mortgage on 220 East 42nd Street.

The modification included a paydown of the principal balance by $9.0 million to $496.4 million and extended the maturity date by more than three years from July 2024 to December 2027. The interest rate was maintained at 2.75% over term SOFR, which the joint venture fixed at 6.77% through the maturity date.

“This extension further emphasizes our strong relationships with the lending community and the confidence lenders have in fortress Manhattan office properties,” said Harrison Sitomer, Chief Investment Officer of SL Green.

Also known as The Daily News Building, 220 East 42nd Street is a 37-story art-deco skyscraper designed by Raymond Hood and John Mead Howells. Currently 91% occupied, the building’s impressive tenant roster includes Visiting Nurse Services, Omnicom Group, United Nations Development Program and WPIX.

The lenders were advised by Doug Middleton of CBRE.

About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties. As of June 30, 2024, SL Green held interests in 55 buildings totaling 31.8 million square feet. This included ownership interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

Forward Looking Statement
This press release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, are forward-looking statements. Forward-looking statements are not guarantees of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms.

Forward-looking statements contained in this press release are subject to a number of risks and uncertainties, many of which are beyond our control, that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by forward-looking statements made by us. Factors and risks to our business that could cause actual results to differ from those contained in the forward-looking statements include the risks and uncertainties described in our filings with the Securities and Exchange Commission. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

PRESS CONTACT
slgreen@berlinrosen.com

SLG-FIN

FAQ

What changes were made to the mortgage on 220 East 42nd Street by SL Green (SLG)?

SL Green (SLG) modified and extended the mortgage on 220 East 42nd Street, including a $9.0 million paydown of the principal balance to $496.4 million, extension of the maturity date to December 2027, and fixing the interest rate at 6.77% through maturity.

What is the current occupancy rate of 220 East 42nd Street owned by SL Green (SLG)?

The current occupancy rate of 220 East 42nd Street, owned by SL Green (SLG), is 91%.

Who are some of the major tenants in SL Green's (SLG) 220 East 42nd Street building?

Major tenants in SL Green's (SLG) 220 East 42nd Street building include Visiting Nurse Services, Omnicom Group, United Nations Development Program, and WPIX.

What is the new maturity date for the mortgage on SL Green's (SLG) 220 East 42nd Street property?

The new maturity date for the mortgage on SL Green's (SLG) 220 East 42nd Street property is December 2027, extended from the original July 2024 date.