toothpick unappreciative: SL Green Realty Corp. Announces Agreement to Acquire 304 Park ...

NEW YORK, May 31, 2012 (BUSINESS WIRE) ?
SL Green Realty Corp.

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+1.50%

, New York City?s largest commercial
office landlord, today announced it has entered into an agreement to
acquire 304 Park Avenue South, a 215,000-square-foot mixed-use office
and retail building for $135 million, or $628 per square foot, from a
partnership headed by David Berley, Chairman of Walter Samuels Inc. SL
Green will acquire the property with approximately 50% cash and 50%
Operating Partnership units. The transaction is expected to close June
1, 2012.

The property is located on the southwest corner of Park Avenue South and
23rd Street directly across the street from SL Green?s One
Madison Avenue in the Midtown South sub-district, an area that boasts
steadily increasing rents and an office market vacancy of sub-6%. The
property features close proximity to Madison Square Park, Union Square,
Gramercy Park and the Flatiron districts, making it highly desirable for
office and retail tenants alike.

The property is 95% leased to a boutique office tenancy including lead
tenant IMG Models, ranked as the world?s number one model management
firm. Retail tenants include HR Block, Bath Body Works and Time
Warner Entertainment.

Andrew Mathias, President of SL Green, commented, ?We?ve been monitoring
Midtown South carefully looking for acquisition opportunities, however
the consistently tightening vacancy rates and substantial lease activity
in the area have driven cap rates on marketed deals below our target
investment thresholds. This unique opportunity came to us because of the
attractiveness of our Operating Partnership Units and our relationship
with the seller. It?s a classic SL Green investment ? off-market,
potential repositioning, and creating value upon acquisition for both
the Company and the seller. This is the fifth time in the past year we
have used OP units in an acquisition, as sellers recognize the unique
benefits of our currency.?

Walter Samuels represented the seller.

Advisor for the transaction was Doug Harmon of Eastdil Secured.

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         Director, Investor Relations         212-594-2700

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