In its fourth quarter investor calls, SL Green Realty Corp. disclosed that Citigroup, Inc. has exercised their option to purchase 388-390 Greenwich Street for $2.0 billion. The closing is scheduled for December 2017. On Thursday, SL Green executives on a quarterly conference call with analysts said the deal would be profitable for the company. "It allows us to close out a very profitable position, investment position, we took in the asset," said Marc Holliday, SL Green's chief executive. He also noted the transaction "will result in a reduction of indebtedness."
Citigroup previously sold the two-building, 2.6 million-square-foot Tribeca complex to SL Green and Ivanhoe Cambridge, a unit of the Société immobilière Trans-Québec (SITQ), for $ 1.58 billion in 2007. Citigroup continued to lease space after the sale through a 15-year leaseback arrangement, and occupies the complex as the headquarters for Citigroup's divisions of Global Wealth Management and Global Trading. 388 Greenwich Street, originally called the Shearson Lehman Plaza, and more recently the Travelers Building, is a 496-foot, 38-story postmodern office building completed in 1988 and designed by Kohn Pedersen Fox. 90 Greenwich Street comprises 10 story building covering a total area of over 2.6 million square feet.
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