A Wachovia spokesperson tells GlobeSt.com that it is thecompany's policy not to comment on transactions and an SL Greenspokesperson tells GlobeSt.com that they are not commenting at thistime. An anonymous source did confirm to GlobeSt.com that "it ishappening," referring to the sale.
[IMGCAP(2)]Hugh Finnegan, an attorney in the real estate groupat Sullivan & Worcester LLP, who is not involved in buildingsale, tells GlobeSt.com that this deal is to generate capital. Heexplains that deals such as these will be a market trend because"financial institutions are looking for ways to improve theirbalance sheets."
Finnegan continues that this deal is "just like what Citibankdid with the Greenwich Street property." Citigroup sold 388-390 GreenwichSt. last December to SL Green and entered into a 15-yearsale-leaseback, thus enhancing their balance sheet, at least in theshort-term," he says. "Wachovia is looking to do something similar,with the obvious difference being that this is not asale-leaseback. They are generating some cash in the short-term.Cash on balance sheets is what Wall Street is looking for rightnow."
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