Citigroup Inc. (C) renewed its lease on 2.63 million square feet (245,000 square meters) at the lower Manhattan office complex it inherited from Travelers Group when it bought the insurer 15 years ago.
The third-biggest U.S. bank agreed to continue renting the space at 388 and 390 Greenwich St., a two-building complex near the Hudson River in the Tribeca section, through 2035, SL Green Realty Corp. (SLG) said today in a statement. New York-based SL Green, the property's majority owner, bought it from Citigroup for $1.58 billion in December 2007.
Citigroup had been examining for more than a year whether to stay at the complex or move to the World Trade Center or the new Hudson Yards development rising on the far west side. The bank had narrowed its choices to the proposed 2 World Trade Center tower or staying put, two people with knowledge of its negotiations said in October.
"We are pleased to continue this strong and highly valued relationship," SL Green Chief Executive Officer Marc Holliday said in the statement.
The complex a 39-story tower and a connected 8-story building includes Citigroup's main U.S. trading operation. The agreement gives the company an option to buy the properties from December 2017 to the end of 2020. The price would be about $2 billion, subject to certain conditions, the real estate investment trust said in a regulatory filing today.
Telephone calls to Shannon Bell, a Citigroup spokeswoman, seeking comment on the lease weren't immediately returned.
SL Green is New York's biggest office landlord, with interests in 89 Manhattan properties totaling 42.3 million square feet. It owns the Greenwich Street complex in partnership with Ivanhoe Cambridge, the Montreal-based real estate unit of Caisse de Depot et Placement du Quebec.