By far the largest of the two acquisitions is the 1.1-million sf News Building, 220 E. 42nd St., which sold for $265 million or $242 per sf. In-place rents at the 100% leased asset are $32.85 per sf, with 18% of the leases set to roll over within three years. Tenants at the Raymond Hood-designed art deco tower include Omnicom Group, which leases 40% of the property, Tribune Co., WPIX-TV and Verizon.
SL Green president Marc Holliday called the News Building "a cornerstone property in the Grand Central and United nations marketplace," adding, "This transaction demonstrates our ability to convert structured-finance investments into wholly-owned assets on a pre-emptive basis."
In a separate deal, SL Green is acquiring condominium interest comprising 15 contiguous floors at 125 Broad St. for $90 million or $172 per sf. The 524,500 space is 100% leased. Salomon Smith Barney occupies 63% of the space, while Fahnestock & Co has 13%. Less than 10% of the leased space expires prior to 2010.
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