Citigroup to Acquire Manhattan Office Complex for $2 Billionby
Bank exercised option to buy Tribeca campus, landlord says
SL Green says transaction scheduled to close in December 2017
Citigroup Inc. will pay $2 billion for an office complex in Manhattan’s Tribeca neighborhood that’s home to its trading and investment-banking operations, having exercised an option that was part of an earlier agreement with landlord SL Green Realty Corp.
The New York-based bank is scheduled to complete the purchase of 388-390 Greenwich St. in December 2017, SL Green said in its fourth-quarter earnings statement Wednesday. SL Green is the city’s largest office landlord.
Citigroup has been consolidating its offices into the Greenwich Street complex, having decided to give up its headquarters at 399 Park Ave. The bank leases 2.63 million square feet (244,000-square meters) at the two-building Greenwich Street property, which SL Green and a unit of Caisse de Depot et Placement du Quebec acquired from the bank in 2007 for $1.58 billion.
The buildings once served as the headquarters of Citigroup’s Travelers Group insurance unit, and were recognizable to West Street drivers by the red umbrella -- the insurer’s logo -- in lights on the side of the complex.