NEW YORK CITY-SL Green Realty Corp. said Tuesday it had signednonprofit managed-care provider Healthfirst to 172,000 square feetat 100 Church St., the largely vacant Downtown office property onwhich it foreclosed this past January and subsequently acquired.Separately, the REIT announced that subtenant Wolfe Trahan &Co. had committed to a direct lease and expansion at 420 LexingtonAve.

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One of the Manhattan’s bigger leases thus far this year, the20-year Healthfirst headquarters deal represents a little less thanone third of the 575,000 square feet of vacant space at the1.1-million-square-foot office property. In a release, StevenDurels, SL Green’s EVP and director of leasing and real property,notes that 100 Church “had been languishing for over five years”prior to the REIT’s commencement of a repositioning program. Headds that the Healthfirst deal is “a great validation” of theprogram.

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The first fruits of that repositioning program took the form ofa 20-year, 21,965-square-foot retail lease in May by the FarberCenter for Radiation Oncology. The Farber Center’s first Manhattanlocation, it was also the first deal SL Green had signed at 100Church since taking possession of the property.

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Derek Trulson, Bill Peters and Daoud Awad from Jones LangLaSalle represented Healthfirst in the transaction. SL Green wasrepresented by a Newmark Knight Frank team that included BrianWaterman, James Kuhn, John Fanuzzi, Hal Stein and Lance Korman. TheNew York Post first reported the deal Tuesday morning, andasking rent was $40 per square foot, according to thePost.

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At 420 Lexington, Wolfe Trahan expanded from a 5,695-square-footsublease to a 10-year direct lease covering a total of 18,975square feet. The tenant, a research boutique firm, focuses ontransportation research, portfolio strategy and quantitativeanalysis.

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Lease terms were not disclosed. Sinclair Li and Alissa Jacob ofCB Richard Ellis represented Wolfe Trahan, while SL Green’s LarrySwiger and Ashley Gee provided in-house landlordrepresentation.

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On Monday evening, SL Green reported that second-quarter fundsfrom operations dipped to $1.02 per diluted share from $1.07 in Q1and $1.20 the year prior, due largely to transaction-relatedexpenses. Analysts polled by Thomson Reuters had expected FFO of$1.01 per share, the Associated Press reported.

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The REIT also reported a year-over-year jump in net income from$0.18 to $1.75 per diluted share. The increase stemmed from a$126.8-million gain on the May sale of a 45% interest in 1221 Ave.of the Americas to a wholly owned subsidiary of the Canada PensionPlan Investment Board.

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That same month, SL Green entered an agreement to buy 125 ParkAve. for $330 million and entered into a joint venture with theCPPIB to acquire 600 Lexington Ave. for $193 million. During Q2,the company signed 461,492 square feet of Manhattan office leases.Average starting rents on the Manhattan portfolio were $40.09 persquare feet, a 4.4% decline from the previously fully escalatedrents on the same office space, SL Green said Monday.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.