at 1515 Broadway.
NEW YORK CITY-Viacom Inc., the company behind major cable networks such as MTV, Nickelodeon and BET, has re-affirmed its commitment at SL Green Realty Corp’s 1515 Broadway through 2031, the Manhattan office REIT confirms in a statement late Wednesday to GlobeSt.com. During the term of the lease, the media company will grow to 1.6 million square feet, which is expected to cover the balance of the building’s office space after 2020.
Marc Holliday, CEO of SL Green, says the decision to stay in Times Square was based on the company’s longstanding presence in the Midtown market. “The company has been a corporate anchor in Times Square for over 20 years and the extraordinary building branding opportunity provided in this lease will allow Viacom to increase its corporate visibility to millions of New York City visitors at the ‘Crossroads of the World’ for years to come,” he says, in a statement. “The transaction reaffirms the desirability for trophy assets located in the prime areas of Midtown Manhattan.”
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Believed to be the largest-ever Manhattan office lease, the record-breaking transaction comes on the heels of a recently closed $775-million first mortgage refinancing by Bank of China Ltd. at the 56-story, two-million-square-foot tower. The seven-year loan replaces the previous $447-million financing.
Michael Laginestra, Scott Gottlieb, Andrew Sussman and Ramneek Rikhy from CBRE Group Inc. and Chris Smith and Gina Love from Shearman & Sterling LLP represented Viacom in the transaction. SL Green was represented in-house and by Noah Shapiro and Russ Rabinovich from Haynes and Boone, LLP.
At the same time, the Manhattan office REIT also reported funds from operations of $99.3 million, or $1.10 per diluted share, for the quarter ended March 31, 2012, a decline from $142.8 million, or $1.75 per diluted share, for the same quarter in 2011. The FFO decrease was based on a one-time gain recognized in the Q1 2011 on the sale of mezz debt at 280 Park Ave., and the issuance of $660 million of common equity since Q1 ’11.
For more information about SL Green’s Q1 earnings, please check GlobeSt.com later today.