Citi to accelerate purchase of HQ in Manhattan

Citi Building Sign

Citigroup agreed to accelerate the $2bn purchase of its headquarters complex in Manhattan’s Tribeca neighborhood, moving up the planned completion date by a year and a half.

Bloomberg News reports that the deal for 388-390 Greenwich St. is now expected to close in June, according to a statement Wednesday from seller SL Green Realty Corp. The companies’ agreement in January had called for a completion in December 2017.

SL Green, New York’s biggest owner of office buildings, expects to realize about $1.8bn in proceeds from the transaction. The company said it intends to use the money to repay a portion of a corporate credit line and retire the property’s $1.45bn mortgage.

Citigroup will pay a $94m fee tied to the early termination of its lease at the complex, SL Green said. The bank began consolidating its offices into the buildings after giving up its headquarters at 399 Park Ave. in Midtown.

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Citigroup to Accelerate Purchase of NYC Headquarters Complex

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