SL Green Realty Corp. and The Moinian Group complete $175 million recapitalization

SL Green Realty Corp., one of New York City's largest owners of commercial office properties, and The Moinian Group, headed by national developer Joseph Moinian, have completed the recapitalization of 3 Columbus Circle - an office tower currently in the final stage of a comprehensive building wide redevelopment. The recapitalization includes a $138 million equity investment by SL Green, a portion of which will be in the form of SL Green Operating Partnership Units. The property is now fully capitalized for all costs necessary to complete the redevelopment and lease-up of the building. The existing mortgage has been refinanced with a bridge loan provided by SL Green and Deutsche Bank, which is intended to be further refinanced by third party lenders at a later date. SL Green will lead a multi-million dollar leasing and marketing program funded by the partnership to re-position the development and attract large office users seeking upscale space at one of midtown's most desirable locations. The Moinian Group is finalizing completion of the $175 million capital program. 3 Columbus Circle will be operated as a premier class A building consistent with the high standards of SL Green's finest assets. The transaction clears the way for 3 Columbus Circle to immediately emerge as Midtown Manhattan's most exciting new business address. The 26-story 768,565 s/f property located at 1775 Broadway occupies the entire block between Broadway and Eighth Ave. and between 57th and 58th Sts. It overlooks Columbus Circle and the southwest entrance to Central Park. The SL Green leasing team is initiating an aggressive marketing program. Joseph Moinian, chairman and chief executive officer of The Moinian Group, said, "We have been confident of this outcome from Day One and the completion of this recapitalization vindicates all of our efforts at 3 Columbus Circle. The property is fully capitalized and well positioned to meet the immediate and long-term needs of the finest office tenants in New York. We are excited to start off 2011 on such a high note and are delighted to have such an excellent partner as SL Green to make available to tenants an exceptional building in one of Manhattan's most prestigious business neighborhoods." Marc Holliday, chief executive officer of SL Green, said, "We're very excited about the prospects for 3 Columbus Circle as our joint venture completes construction and brings the building to the leasing market just as demand for large blocks of well-located, high-quality office space is on the rise. We expect this to be a very successful venture for both us and The Moinian Group. We've had a longstanding, successful relationship with Joe Moinian and we are happy to be joining forces once again." FTI Schonbraun McCann acted as advisors for this transaction.