SL Green Announces Fifth Avenue Retail Transactions: SL Green Received $85M in Net Cash Proceeds

SL Green Realty Corp.

and partner Jeff Sutton have announced the restructuring and recapitalization of their joint venture at 717 Fifth Avenue. In these transactions, SL Green has sold 50% of its interest to Sutton and retains a 10.92% stake in the venture's retail condominium property at a price that values the asset at $618 million, or $5,015 per square foot. This valuation reflects a 4.9% capitalization rate on in-place net operating income. In addition, the venture has received $590 million of new financing in the form of a $300 million fixed-rate mortgage loan and a $290 million mezzanine loan. The mortgage loan, originated by New York Life and TIAA, has a 10-year term and the mezzanine loan, originated by RREEF, has a 12-year term. SL Green received $85 million in net cash proceeds from the transactions.