The City of New York has renewed its lease with SL Green covering 372,520 sq. ft. for offices of the law division at 100 Church Street, a 21-story, 1.05-million-sq.-ft. building in downtown Manhattan. The 20-year lease renewal commences in November 2013 covering floors 2-6, 20 and a portion of the building's concourse level. The lease was scheduled to expire in October 2013.
SL Green refinanced the property with a new $230 million, 10-year loan bearing interest at a rate of 4.675 percent. Proceeds from the financing, which was provided by Wells Fargo Bank, will be used for general corporate purposes.
“We are delighted to have the City of New York as our anchor tenant. The City’s decision to extend its commitment is testament to the quality of our recently completed redevelopment of 100 Church Street,” Steven Durels, executive vice president and director of leasing and real property for SL Green, said in a statement. “This early renewal is consistent with our firm’s proactive management of future lease expirations which has led to consistently high portfolio occupancy."
SL Green acquired the building in 2010 after it had been 56 percent vacant for over five years. A comprehensive redevelopment of the property, which was completed in 2011, included a new lobby, windows, infrastructure upgrades, new roofs and retail repositioning. Building occupancy is now 82 percent and major tenants, in addition to the City of New York, include HealthFirst, Niche Media, Interactive Data Corp, Centerline Capital Group and the State of New York.
CBRE’s Michael Geoghegan and John Morrill represented the City of New York in the transaction.
Caroline Silk, Esq. represented the City of New York in-house, and Peter Strauss, Esq. and Christopher Smith, Esq. of Shearman & Sterling acted on behalf of SL Green.