SL Green Realty Corp. and partner Ivanhoé Cambridge announced that an affiliate of Citigroup Inc. has signed an agreement extending Citi’s triple-net leases covering 2,634,670 s/f at 388-390 Greenwich Street through December 31, 2035.
The agreement includes an option for Citi to acquire the properties during the period from December 1, 2017 through December 31, 2020.
“We worked tirelessly to structure a transaction that is advantageous to all parties, and we are extremely pleased that Citi has extended its long-term commitment to Downtown Manhattan,” said Marc Holliday, chief executive officer of SL Green Realty Corp.
“We congratulate our partner SL Green on the closing of this major transaction which re-affirms a long-standing relationship with one of the world’s premier financial institutions and assures that the property will maintain its status as one of the leading buildings of New York,” added Daniel Fournier, chairman and CEO, Ivanhoé Cambridge.
388 Greenwich is a 39-story tower with efficient floors and unobstructed views. 390 Greenwich is an 8-story building featuring 94,000 s/f floors that are considered some of the finest trading floors in the world.
CBRE’s Robert Alexander, Michael Geoghegan, Andrew Sussman and Michael Wellen represented Citibank while SL Green acted on behalf of the landlord partnership.
According to Crains New York Business, Citi’s signed a more than $1 billion deal to renew its Greenwich Street lease and gut-renovate the complex.
Citi has the option to extend its 2.7 million-square-foot lease by at least 15 years at the two properties when it expires in 2020 or exercise a right to acquire the buildings for around $2 billion, according to Crains.
Citi previously owned the two buildings but sold them for nearly $1.6 billion to the SL Green / Ivanhoe Cambridge in 2007. It had considered several locations in its search for space, including Hudson Yards and World Trade Center site.