Citigroup has signed an agreement extending their triple-net leases covering 2,634,670 square feet at 388-390 Greenwich Street in Manhattan through December 31, 2035. The agreement includes an option for Citigroup 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 in a statement. “Citi is one of the world’s great financial institutions. SL Green has enjoyed being its largest landlord and we are pleased to continue this strong and highly valued relationship.”
Citigroup previously owned the pair of buildings but sold them in 2007 in order to reduce real estate exposure on its balance sheet. The complex was acquired by a joint venture consisting of SL Green Realty Corp. and SITQ for $1.58 Billion. Citigroup, however, maintained their primary presence in the complex through a 15-year leaseback arrangement.
The 39-story 388 Greenwich tower stands about ten blocks north of the World Trade Center site and is among the tallest in Tribeca. Like many other office buildings in Manhattan, 388 Greenwich Street contains a fitness center, full-service dining facilities, a medical center, a conference center, a day care center, and an outdoor park. The building is one of the few in New York to utilize double-deck elevators.
390 Greenwich is an 8-story building featuring 94,000 sq. ft. 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 represented themesleves and partner Ivanhoé Cambridge.
Image courtesy of SL Green