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SL Green offers 111 Wall Street loan

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Marc Holliday of SL Green and 111 Wall Street (Credit: SL Green; Google Maps)

SL Green Realty is seeking offers for its largest loan yet as the company seeks to raise a significant cash reserve against the economic downturn.

The real estate investment trust is offering the $110 million loan it made to Nightingale Properties and Wafra Capital Partners earlier this year to finance your purchase of the 1 million square foot office tower at 111 Wall Street in the Financial District, sources said The real deal.

The 6% fixed-rate loan has a maturity date of January 2021, according to an offering memorandum reviewed by TRD. It comes with a capital repayment guarantee of $20 million.

A representative for SL Green did not immediately respond to a request for comment. The REIT brought in Walker & Dunlop to market the loan for sale.

SL Green provided the debt to Nightingale and Wafra, an arm of Kuwait’s sovereign wealth fund, when they bought the 49-year land lease at 111 Wall Street in January for $175 million from Zurich Insurance. The Korein family owns the land below the 24-story tower, into which the new owners plan to inject up to $150 million in order to modernize them.

The loan is the latest asset Marc Holliday’s SL Green has put up for sale as the company seeks to fill its coffers. At the end of last month, the company brought to market a total of eight loans with a combined principal balance of nearly $280 million – loans on New York office and retail properties whose size varies from about 20 to 70 million dollars.

The company is said to be in talks to sell three of these loans to CIM Group, Rockwood Capital and Kushner Companies at values ​​below par.

Green SL too recently put a pair of multi-family buildings in the Sutton Place area of ​​Manhattan for sale with nearly 400 units between them.

Company executives said they were seeking to raise up to $1 billion to protect against the adverse effects of the Covid-19 pandemic on the city’s real estate market.

“It’s a measured number, but it’s also an arbitrary number,” Holliday said at the company conference. call for first quarter results Last week. “That’s the number we think if we have that kind of cash in the bank, with our liability structure and our asset structure, it makes us as impenetrable as possible, and that’s where we want to be. “

SL Green had planned to use the proceeds from the sale of the Daily News Building at 220 East 42nd Street to fill its coffers, but had to find other sources of capital to raise after Jacob Chetrit. withdrew from the $815 million deal.

Contact Rich Bockmann at [email protected] or 908-415-5229.