SL Green forms joint venture with CPPIB and closes on acquisition of 10 East 53rd Street for $252.5 million

SL Green Realty Corp. has closed on its acquisition of 10 East 53rd St., a 37-story, 390,000 s/f Midtown office building. The company also said that it has sold a 45% joint venture ownership stake in 10 East 53rd St. to Canada Pension Plan Investment Board (CPPIB) which has made an equity investment of $57.4 million before closing costs, adjustments and working capital. The purchase price of the property was $252.5 million. New York Commercial Bank is providing the venture with a five-year, $125 million, floating rate mortgage financing. Andrew Mathias, president of SL Green, said, "We believe that the prestige and value of quality properties in the Plaza District of Midtown Manhattan are unparalleled. The chance to add an additional plaza asset to our core portfolio does not come along often and upon being presented with this unique opportunity, we took it. Having CPPIB join with us in the venture further supports our belief in the potential of 10 East 53rd St." Peter Ballon, vice president and head of real estate investments - Americas, CPPIB, said, "We are delighted to acquire a significant interest in a high quality and extremely well located property which has the potential to be repositioned as a top boutique office property in Midtown Manhattan. This expands our real estate portfolio in New York City to interests in five prime office buildings in Manhattan. We are pleased to be partnering once again with SL Green who has a strong track record at repositioning Midtown office properties."