New York City – Many NNN Commercial Real Estate investors are searching for quality properties with steady income. We see some NNN Commercial Real Estate investors going for large Office Buildings, single tenant triple net lease properties and retail shopping centers. Some of the biggest commercial real estate deals are coming from Washington, D.C. and New York. Further evidence of that is the recent transaction with the Starrett-Lehigh Building. SL Green Capital Corp. pushed itself into the zone of largest office landlord in New York. SL Green Capital Corp. purchased $390.8 million of Manhattan commercial real estate investments from Gramercy Capital Corporation. SL Green Capital Corp. purchased these prestigious commercial real estate properties with the assumption of $265.6 million in commercial loans. The benefits of this deal comes with this commercial loan assumption, SL Green Capital Corp. did not have to come up with cash for the commercial real estate.
SL Green Corp, was able to acquire 45% of Gramercy’s stake in the leased fees of the Lipstick Building. This Investment Property is located at 885 Third Avenue. The Lipstick Building is the collateral for a $120.4 million commercial loan. Gramercy received $89.8 million in cash and about $39 million in restricted cash due to the commercial loans being assumed and mezzanine loans. There are still resources to fund various forms of NNN Commercial Real Estate.
SL Green Corp. acquired 2 Herald Square and 100% of its interest in 292 Madison Avenue. The 2 Herald Square commercial real estate takeover, costs $25.6 million, and includes an $86.1 million commercial loan assumption. SL Green Corp. gets 100% control of this commercial real estate by consolidating its position and an implied total value of $247.5 million.
SL Green and Gramercy also structured the commercial real estate deal with the a $38.7 million mezzanine loan secured by equity interests in the Starrett-Lehigh Building. The Starrett-Lehigh Building has Tenants leasing that include several fashion, media & arts tenants, as well as a number of important corporations. These net-leased tenants are attracted by the abundant light and unobstructed spectacular views of Manhattan and the Hudson River. This Commercial Office Building had a $30 million renovation, which improved every major component of the buildings infrastructure.
The renovation included the installation of new high speed passenger elevators, HVAC system, high voltage electric capacity, redesigned lobby, new roof and heating plant. This Commercial Office Building has truck accessible floors that includes corporate tenants such as Verizon, Martha Stewart, LVMH subsidiary Clicqout Inc., Zurich American Insurance, and fashion tenants such as Hugo Boss, Commes Des Garcons, School of Visual Arts, Palm Pictures, Club Monaco and RR Donnelly.
The Starrett-Lehigh Building is a 2.3 million square-foot high-rise office building located at 601 West 26th Street between 11th & 12th Avenues. This Investment Property takes up an entire city block, which is the west side waterfront. The Commercial Office Building can accommodate Tenants ranging in size from 5,000 square feet to 200,000 square feet.
Gramercy Capital Corp. is a self-managed integrated commercial real estate finance and commercial property investment company. Gramercy Finance division focuses on the direct origination, acquisition and Investmnet Property portfolio. They also manage commercial loans, subordinate interests in whole loans, mezzanine loans, preferred equity, (CMBS) commercial mortgage-backed securities and other commercial real estate securities. Gramercy Realty division targets commercial properties leased primarily to financial institutions and affiliated users throughout the United States. Gramercy is headquartered in New York City, and has regional investment and portfolio management offices in Jenkintown, Pennsylvania, Charlotte, North Carolina and out in the mid-west in St. Louis, Missouri.
Net Lease Properties and Commercial Real Estate Investments are available for acquisition all over Florida. Also for commercial real estate investors in a 1031 exchange, feel free to contact us for replacement properties using Net Lease Property. More and more Investors are using our online commercial real estate services tool to find Properties. We are ready to assist you with for Acquisitions and Dispositions.
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