NEW YORK--(BUSINESS WIRE)--SL Green Realty Corp. (NYSE: SLG), New York City’s largest commercial property owner, today announced that it has entered into an agreement to expand its presence in the New York City residential market by acquiring a stake in a 23-building, 2.55 million square foot portfolio comprised of 2,815 rental apartments and 43,000-square-feet of prime retail space. As a result of the transaction, SL Green will own a 50% share in both the partnership interests and promotes in the portfolio held through entities affiliated with Stonehenge with Ofer Yardeni retaining the other 50% ownership interest. In addition, the properties will continue to be managed and operated by Stonehenge and continue to be owned in partnerships with various institutional partners.
The purchase price will be primarily funded through the issuance of $40 million of preferred SL Green operating partnership units. The transaction is expected to close in the first quarter of 2015, subject to customary closing conditions.
David Schonbraun, SL Green’s Co-Chief Investment Officer, said, “This investment represents an incredible opportunity for SL Green to expand its residential portfolio in partnership with a proven operating partner. Over the past few years, we have developed a strong relationship with Ofer Yardeni and Stonehenge Partners. They are a best-in-class residential operator and we believe that together we can enhance the current portfolio’s value and build upon our previous successes.”
“Stonehenge is excited to partner with SL Green again, and this time, in a much greater capacity. I have had the pleasure of working with the company for many years and partnered with them in prior investments,” said Ofer Yardeni, Chairman and CEO of Stonehenge. “Their extensive experience and expertise in the real estate industry is unparalleled and will add lasting value to Stonehenge.”
The portfolio consists of properties located in the some of the best and most attractive submarkets of Manhattan, including Gramercy Park, the West Village, Chelsea, Murray Hill and the Upper East and West Sides.
FTI Consulting acted as advisor to the transaction.
About SL Green Realty Corp.
SL Green Realty Corp., New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2014, SL Green held interests in 96 Manhattan buildings totaling 44.1 million square feet. This included ownership interests in 28.0 million square feet of commercial buildings and debt and preferred equity investments secured by 16.1 million square feet of buildings. In addition to its Manhattan investments, SL Green held ownership interests in 35 suburban buildings totaling 5.9 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey. For more information, please visit: http://slgreen.com/
About Stonehenge Partners
Stonehenge Partners is a fully-integrated owner and operator of premier residential and commercial real estate, with a focus on value-add residential rental properties in New York City. Led by Chairman and CEO Ofer Yardeni, Stonehenge today owns and manages a portfolio recently appraised at $2.75 billion which is comprised of 26 properties with more than 3,000 residential apartment units. Recognized for its above-and-beyond customer service platform and five-star lifestyle programming, Stonehenge provides a residential experience that is second to none.
For more information about Stonehenge Partners, visit www.stonehengenyc.com or call 646-878-2004.
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 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 are described in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.
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