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NEW YORK CITY-A venture between SL Green Realty Corp. and SITQ has closed on the acquisition of two Downtown office buildings at 388 and 390 Greenwich St. for $1.6 billion, or $598 per sf, a deal that was reported on GlobeSt.com in early December. The buildings, which are adjacent and total more than 2.6 million sf, are 100% occupied by Citigroup, which will remain in place under the terms of a 13-year triple-net lease that provides for annual rental increases.

Under the joint venture, SL Green has a 50.6% interest and SITQ has a 49.4% interest. The two buildings, completed in the late 1980s, form a campus located on the Hudson River Waterfront that straddles the Tribeca and World Financial Center.

Amenities at the 40-story 388 Greenwich St. headquarters include full-service dining facilities, fitness center, medical center, conference center, day care and an outdoor park area. 390 Greenwich St. features 10 stories of trading facilities and offices with floor plates ranging from more than 72,000 sf to over 93,000 sf.

SL Green CEO Marc Holliday says in a prepared statement that “this acquisition is a terrific investment for us–with attractive low-rate committed financing. In addition to normal rental income, our innovative joint venture structure with SITQ provides for fees and promotes that will enhance SL Green’s returns.”

Holliday continues that the deal was completed in a very short time frame and further “demonstrates SL Green’s well-known ability to identify attractive deal opportunities and then get them done. Quick and certain execution are an important advantage which helps us to stand out in the marketplace. This transaction also reinforces our reputation as a preferred landlord to Citigroup.”

When the agreement was initially revealed, Paul Campbell, president and CEO of SITQ, said that the company sees this as a “terrific way to invest in some of Downtown Manhattan’s truly iconic properties. To do so alongside SL Green…made it all the more attractive to us. As New York City market conditions continue to evolve, we will look for additional opportunities.”

Mortgage financing for the transaction has been provided by Westdeutsche ImmobilienBank AG and PB Capital Corp. and arranged by Cushman & Wakefield Sonnenblick-Goldman LLC. The law firms of Fried, Frank, Harris, Shriver & Jacobson LLP and Greenberg Traurig represented SL Green.

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