chambermaid codded: SL Green Announces Fifth Avenue Retail Transactions ...

NEW YORK, Jul 25, 2012 (BUSINESS WIRE) ?
SL Green Realty Corp.

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and partner Jeff Sutton have announced
the restructuring and recapitalization of their joint venture at 717
Fifth Avenue. In these transactions, SL Green has sold 50% of its
interest to Sutton and retains a 10.92% stake in the venture?s retail
condominium property at a price that values the asset at $618 million,
or $5,015 per square foot. This valuation reflects a 4.9% capitalization
rate on in-place net operating income.

In addition, the venture has received $590 million of new financing in
the form of a $300 million fixed-rate mortgage loan and a $290 million
mezzanine loan. The mortgage loan, originated by New York Life and TIAA,
has a 10-year term and the mezzanine loan, originated by RREEF, has a
12-year term.

SL Green received $85 million in net cash proceeds from the transactions.

SL Green acquired its interest in the property in 2006 at a price which
valued the property at $230 million. During six years of ownership, net
operating income was increased by approximately 2.5 times via the
execution of new retail leases with Armani and Dolce Gabbana and the
relocation of Escada to new space on 55th Street.

SL Green President, Andrew Mathias, commented, ?Our joint venture
investment with Jeff Sutton at 717 Fifth Avenue has been a resounding
success, as evidenced by the realization of net operating income through
creative repositioning and leasing over the past six years. The result
is a sizable gain in asset value, as recognized by our lenders, as well
as our ability to monetize a portion of our position and generate
substantial cash proceeds.?

Located in the heart of Manhattan?s Plaza District, 717 Fifth Avenue is
well positioned along New York City?s most desirable stretch of luxury
retail properties. The retail condominium totals 123,000 square feet on
four floors, with 81.5 feet of sidewalk frontage on Fifth Avenue. The
long-term leases with Dolce Gabanna and Escada were executed in 2011.

About SL Green:

SL Green Realty Corp., New York City?s largest office landlord, is the
only fully integrated real estate investment trust, or REIT, that is
focused primarily on acquiring, managing and maximizing value of
Manhattan commercial properties. As of March 31, 2012, SL Green owned
interests in 70 Manhattan properties totaling more than 39.0 million
square feet. This included ownership interests in 27.3 million square
feet of commercial properties and debt and preferred equity investments
secured by 11.7 million square feet of properties. In addition to its
Manhattan investments, SL Green holds ownership interests in 32 suburban
assets totaling 6.9 million square feet in Brooklyn, Queens, Long
Island, Westchester County, Connecticut and New Jersey, along with four
development properties in the suburbs encompassing approximately 0.5
million square feet.

Forward Looking Statements

This press release includes certain statements that may be deemed to
be ?forward-looking statements? within the meaning of the Private
Securities Litigation Reform Act of 1995 and are intended to be covered
by the safe harbor provisions thereof. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that we expect, believe or
anticipate will or may occur in the future, including such matters as
future capital expenditures, dividends and acquisitions (including the
amount and nature thereof), development trends of the real estate
industry and the Manhattan, Brooklyn, Queens, Westchester County,
Connecticut, Long Island and New Jersey office markets, business
strategies, expansion and growth of our operations and other similar
matters, are forward-looking statements. These forward-looking
statements are based on certain assumptions and analyses made by us in
light of our experience and our perception of historical trends, current
conditions, expected future developments and other factors we believe
are appropriate.

Forward-looking statements are not guarantees of future performance
and actual results or developments may differ materially, and we caution
you not to place undue reliance on such statements. Forward-looking
statements are generally identifiable by the use of the words ?may,?
?will,? ?should,? ?expect,? ?anticipate,? ?estimate,? ?believe,?
?intend,? ?project,? ?continue,? or the negative of these words, or
other similar words or terms.

Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties that may cause our actual
results, performance or achievements to be materially different from
future results, performance or achievements expressed or implied by
forward-looking statements made by us. These risks and uncertainties
include the effect of the credit crisis on general economic, business
and financial conditions, and on the New York metropolitan real estate
market in particular; dependence upon certain geographic markets; risks
of real estate acquisitions, dispositions and developments, including
the cost of construction delays and cost overruns; risks relating to
structured finance investments; availability and creditworthiness of
prospective tenants and borrowers; bankruptcy or insolvency of a major
tenant or a significant number of smaller tenants; adverse changes in
the real estate markets, including reduced demand for office space,
increasing vacancy, and increasing availability of sublease space;
availability of capital (debt and equity); unanticipated increases in
financing and other costs, including a rise in interest rates; our
ability to comply with financial covenants in our debt instruments; our
ability to maintain our status as a REIT; risks of investing through
joint venture structures, including the fulfillment by our partners of
their financial obligations; the continuing threat of terrorist attacks,
in particular in the New York metropolitan area and on our tenants; our
ability to obtain adequate insurance coverage at a reasonable cost and
the potential for losses in excess of our insurance coverage, including
as a result of environmental contamination; and legislative, regulatory
and/or safety requirements adversely affecting REITs and the real estate
business, including costs of compliance with the Americans with
Disabilities Act, the Fair Housing Act and other similar laws and
regulations.

Other factors and risks to our business, many of which are beyond our
control, are described in our filings with the Securities and Exchange
Commission. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of future events, new
information or otherwise.

SOURCE: SL Green Realty Corp.

          SL Green Realty Corp.         Andrew Mathias         President         or         Heidi Gillette, 212-594-2700         Director, Investor Relations

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