SL Green Increases Lipstick Building Stake

NEW YORK CITY-SL Green Realty Corp. and Gramercy Capital Corp. said Monday they’ve forged an agreement for the REIT to buy a trio of Gramercy investments for an aggregate price of $390.8 million. Largest of these is a 45% joint venture stake in the leased fee of the office tower at 885 Third Ave., better known as the Lipstick Building.

SL Green is acquiring that Lipstick Building stake for $39.3 million and assuming $120.4 million in mortgage debt. A JV of SL Green and Gramercy already owns a 79% fee interest and 21% leasehold interest in the property; the deal announced Monday would increase SL Green’s ownership of the JV to 100%, for an implied total value of $352 million. Last month, GlobeSt.com reported that the ownership of 885 Third, an entity of Israel-based Metropolitan Real Estate Investors, sought a prepackaged bankruptcy.