Citigroup Signs $1B Lease Extension to Relocate Headquarters in Lower Manhattan
- Dec 20, 2013
Citigroup Inc., the third-biggest bank in the U.S., and SL Green Realty Corp. recently signed a $1 billion lease agreement and renovation deal that will allow the financial giant to relocate its headquarters from the existing offices at 399 Park Avenue to a twin-building complex on Greenwich Street through December 31, 2035.
Crain’s New York Business reports that Citigroup owned the 39-story 388 Greenwich tower and the adjacent 390 Greenwich, an eight-story building offering 94,000 square feet of prime office space, until 2007 when the two buildings were sold to SL Green and Ivanhoe Cambridge for $1.6 billion. The newly signed deal includes an option for Citigroup to buy back the two properties during the period from December 1, 2017 through December 31, 2020, as well as a thorough renovation of the office buildings which were built in the 1990s.
Reportedly, Citigroup already occupies space at the office complex in Lower Manhattan. According to the newly signed deal, the financial giant can also extend the 2.7-million-square-foot lease by at least 15 years.
According to an official statement from SL Green, Citigroup was represented in this transaction by Robert Alexander, Michael Geoghegan, Andrew Sussman and Michael Wellen from CBRE and received legal counseling from law firm Fried Frank, while SL Green acted on behalf of the landlord partnership.
“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 Corp. “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.”
Images of 388 and 390 Greenwich Street courtesy of SL Green Realty Corp.