* SL Green/Vornado to have "significant" equity stake
* Control to rest in three owners
* Property to get $150 mln makeover
(Adds background, details of ownership, byline)
By Ilaina Jonas
NEW YORK, May 17 SL Green Realty Corp (SLG.N) and
Vornado Realty (VNO.N), two of the biggest owners of Manhattan
office buildings, have reached an agreement with the owner of a
Park Avenue building which will give the real estate investment
trusts majority ownership.
After months of negotiations, SL Green and Vornado, who hold
almost all of the junior loans on 280 Park Avenue, said on Tuesday
that the joint venture they formed in March will be the primary
owner of the 1.24 million square foot building near Grand Central
SL Green and Vornado teamed up in a 50-50 joint venture after
both tried to gain a position to take over the building if the
owner, Broadway Partners, could not keep up with the mortgage
Broadway Partners and Middle East money manager Investcorp
paid $1.278 billion in 2007 for 280 Park, making it the
fourth-highest price paid for an office building that year,
according to Real Estate Alert.
The 1.237 million square foot building consists of a 31-story
tower, a 43-story tower and a 14-story connecting building.
The building has struggled with rising vacancies. Deutsche
Bank left after its lease on 338,700 square feet expired last
month. The National Football League's lease on 205,000 square feet
of space is due to expire at the end of February 2012. That could
leave the office complex 45 percent empty.
The three parties will invest $150 million to refurbish the
The three parties will have control over the property but the
SL Green/Vornado joint venture will "hold a significant majority
equity stake in the property."
Neither SL Green, Broadway nor Vornado returned phone calls
seeking more information. Broadway Partners is injecting more
money into the building, although it did not disclose how much.
Investment bank EdgeRock Realty Advisors has been
representing Broadway Partners.
(Reporting by Ilaina Jonas; Editing by Tim Dobbyn, Phil