SL Green Realty Corp. has agreed to acquire Ivanhoe Cambridge’s stake in the Citigroup headquarters at 388-390 Greenwich Street and will assume full ownership of the building, the real estate investment trust announced today.
The REIT will pay approximately $783 million for a 49.4 percent stake in the 2.6 million-square-foot property, according to Commercial Real Estate Direct. The transaction values the consolidated investment at $1.585 billion.
The office property is triple-net leased to Citigroup through 2035, per the terms of an extension signed last year. The extension includes an option for Citigroup to purchase the building between December 1, 2017 and December 31, 2020.
“We have enjoyed a successful partnership with Ivanhoe Cambridge at 388-390 Greenwich, capped by Citi’s recent lease extension, which was one of the largest lease transactions ever executed in New York,” said Andrew Mathias, president of SL Green, in a prepared statement. “Citi is one of the world’s great financial institutions and has been a valued tenant at several SL Green properties. We look forward to an ongoing strong relationship with Ivanhoe Cambridge and Citi as we continue to grow as New York City’s largest office landlord.”
Ivanhoe Cambridge is the real estate arm of Quebec’s public pension manager. In October, the company acquired a 51 percent managing interest in 1211 Avenue of the Americas from Beacon Capital Partners for $850 million.
Callahan Capital Properties advised Ivanhoe Cambridge in the transaction.