SL Green Realty Corp. and Gramercy Capital Corp. agreed that SL Green will purchase investments from Gramercy for a $390.8 million aggregate price, including the assumption of $265.6 million in debt.

The transactions, which are expected to close in the next 90 days, are subject to certain conditions. The deals include acquisitions by SL Green of 45% joint venture interest in the leased fee of 885 Third Avenue, New York, NY for roughly $39.3 million, including pro rations, plus an assumed mortgage debt of $120.4 million. This property is also known as the Lipstick Building.

The deal also includes a 45% joint venture interest in the leased fee of 2 Herald Square, New York, NY for around $25.6 million. This deal also includes pro rations, plus an assumed mortgage debt worth $86.1 million. 

It will also include the entire leased fee interest in 292 Madison Avenue, New York, NY for about $19.2 million. The transaction also covers pro rations, plus an assumed mortgage debt of $59.1 million.

The two firms also said that a $38.7 million mezzanine loan secured by equity interests in 601 West 26th Street, New York, NY, which supplements an existing SL Green investment in the building. This property is also known as the Starrett-Lehigh Building.

“These transactions enable us to monetize several non-controlling co-investment positions, produce a substantial increase in our corporate liquidity, and further deleverage Gramercy’s balance sheet," said Roger M. Cozzi, chief executive officer of Gramercy. "The transactions are expected to increase our unrestricted corporate liquidity by approximately $89.9 million, and create added restricted liquidity for one of our CDOs. We’re pleased to reach agreement on transaction terms that help Gramercy achieve its short and long-term objectives.”

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