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Deals & Dealmakers

Investment boss Isaac Zion exits SL Green

SL Green Realty Corp. announced that Isaac Zion, co-chief Investment Officer, will leave the company effective July 31, 2020 to pursue new professional interests.

“For more than a decade, Isaac has done an exemplary job co-leading the investments team. We thank him for all of his accomplishments here and his tireless efforts at adding value across the entirety of our platform,” said Andrew Mathias, president of SL Green Realty Corp.

ISAAC ZION

The day-to-day operations of the Investments team will continue to be led by David Schonbraun, chief investment officer, along with managing directors, Brett Herschenfeld and Robert Schiffer.

In a recent update on the company’s activities and progress during the COVID-19 crisis, chairman Marc Holliday said rent collections had “held up well” and “we have amassed a substantial amount of cash liquidity in a short period of time.”

Since April, SL Green has closed, or placed under contract, dispositions and joint ventures totaling $919.3 million of transaction value.

It has closed on the sale of the retail condominium at 609 5th Avenue (rendering top) to an affiliate of the Reuben Brothers for total consideration of $168 million and sold a 49.5 percent joint venture interest in One Madison Avenue to the National Pension Service of Korea and Hines Interest, LP, which have committed aggregate equity to the project of no less than $492.2 million, and

SL Green generated $485.1 million of cash from the debt and preferred equity (DPE) portfolio through the sale of five DPE positions totaling $259.1 million of proceeds at an average price of 99.5 percent of book value and repayments totaling $226 million of proceeds. A portion of the proceeds from these activities was used to repay the Company’s DPE financing facility in its entirety.

In April, SL Green announced the creation of its “$1 Billion Dollar Plan” to amass at least $1 billion of cash by June 30, 2020, creating a strategic cash reserve through the sale of real estate assets, the sale of select DPE investments together with repayments, and financing and refinancing activities.

The company has achieved its goal more than 30 days ahead of its initial timeline. This achievement has allowed the company to restart its share repurchase program, repurchasing $44.1 million of common stock to date in the second quarter.

Throughout the COVID-19 pandemic, SL Green has collected the vast majority of its property billings. April collections reached 95.1 percent for office, 63.3 percent for retail and 89.1 percent overall, up from 91.8 percent, 60 percent and 85.7 percent respectively, as of April 30.

To date, May collections are on a similar trajectory to April with collections of 91.1% for office, 54.7% for retail and 84.7% overall. The Company expects May collections to increase further during June as some tenants are taking longer to make payments than they have historically.

One Vanderbilt

SL Green continues to make significant progress on the Company’s development and redevelopment projects, including its most prominent project, the 1.7 million square foot, 1,401 foot tall One Vanderbilt Avenue, which remains ahead of schedule and more than $100 million under budget. The tower is 67 percent leased and is now expected to obtain its Temporary Certificate of Occupancy on or before September 14, 2020.

The Company is implementing its “SLG Forward” initiative, a comprehensive approach to providing a safe and welcoming environment to all tenants, visitors and employees. The plan includes a significant financial investment by the company to provide enhancements to every property’s environment, infrastructure, procedures, technology, cleaning and air filtration in response to COVID-19.

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