SL Green Recapitalizes 2 Herald Square, Attains 93% Occupancy
Zacks Investment Research | Dec 05, 2018 02:27AM ET
SL Green Realty Corp. (NYSE:SLG) recently announced recapitalization of 2 Herald Square (NYSE:SQ). The company also disclosed signing of four transactions that involved 177,081 square feet of space in aggregate at the property. With these deals, the company is able to achieve more than 93% occupancy for this building.
The recapitalization of the property comes as part of the company’s value-add capital program aimed at restoring the property, and boosting tenant roster and occupancy. Specifically, the company obtained $150 million of first mortgage financing for 2 Herald Square and disposed a 49% partnership stake to an Israeli institutional investor.
On the other hand, the transactions included the execution of an agreement to transfer a 30-year leasehold condominium, comprising 95,370 square feet, to Mercy College and signing of a new 29,388-square-foot lease to expand WeWork. Also, the transactions involved securing of new retail leases with Victoria Secret and Happy Socks. This helped in filing a recaptured Sixth Avenue lobby space that was transformed into a retail opportunity.
Positioned amid Manhattan’s busiest locations, and vibrant retail and office submarket, this 369,000-square-foot office and retail asset is expected to be in demand following the capital investment. The company had acquired the leasehold at 2 Herald Square earlier and its concerted strategic efforts have helped expansion of existing tenants and boost the tenant roster with addition of new tenants.
Off late, SL Green has been in news. The company recently announced that with TD Securities’ recent 20-year lease deal for 118,872 square feet of space on the full 10th and 12th floors plus part of the 11th floor, the office portion of One Vanderbilt (its 1,401-foot trophy office tower in East Midtown in New York City) is now 52% leased. (Read more: Zacks Investment Research
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