NEW YORK CITY—SL Green Realty Corp. has refinanced 388-390 Greenwich St. The new seven-year, $1.45 billion mortgage was provided by a lending group led by Citigroup and included Bank of China, Wells Fargo, and Barclays. The REIT gained full control of the building—which is triple net-leased to an affiliate of Citigroup through 2035—back in March.
The new loan, which bears interest at LIBOR + 1.75%, features an initial 4-year term and three, 1-year as-of-right extension options, and replaces the former $1.138 billion financing. The refinancing follows the December, 2013 triple net lease renewal by an affiliate of Citigroup of the entire 2,634,670 square foot complex through December 31, 2035 and SL Green’s subsequent agreement to purchase Ivanhoe Cambridge’s stake in the properties.
A portion of the net proceeds from the refinancing were used to close on SL Green’s purchase of Ivanhoe Cambridge’s interest, which occurred simultaneously with the closing of the new financing.
Says Andrew Mathias, president of SL Green, “Our ability to execute this refinancing under favorable terms stems from the lending community’s demonstrated confidence in SL Green, the overall strength of the New York City office market, and Citi’s long-term commitment to the properties.”
Eastdil Secured arranged the refinancing on behalf of SL Green.