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

SL Green Realty Corp. (NYSE: SLG) 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.