SL Green Announces Sale of Interests in Two Residential Properties
April 21 2021 - 4:11PM
SL Green Realty Corp. (NYSE:SLG), Manhattan’s largest office
landlord, has entered into a contract to sell its 20.0% interest in
605 West 42nd Street, also known as “Sky”, for a gross valuation of
$858.1 million and, separately, entered into a contract to sell its
interests in 400 East 57th Street for a gross valuation of $133.5
million. The Sky transaction is scheduled to close during the
second quarter of 2021, while the 400 East 57th transaction is
expected to close during the third quarter of 2021, each subject to
customary closing conditions.
Sky, a 71-story, 948,000 square foot luxury multifamily tower,
is 90% occupied and includes 295 units of dedicated affordable
housing and 68,000 square feet of retail space. The Company
acquired its 20.0% interest in 2016 pursuant to a previous
mezzanine loan on the property. The transaction is expected to
generate net cash proceeds to SL Green of approximately $53.0
million.
400 East 57th Street, a 211,000 square foot multifamily
property, is 70% occupied and includes 263 residential units and
approximately 10,000 square feet of retail space leased to
essential service providers. The transaction is expected to
generate net cash proceeds to SL Green of approximately $18.0
million.
“The sales of our interests in these two properties are a
continuation of our strategy to divest non-core assets, including
residential properties, and reinvest the capital on a value
accretive basis into our share repurchase program and development
projects,” said David Schonbraun, Chief Investment Officer
of SL Green. “We have seen a distinct rebound in the
residential market in recent months, which validates the continued
demand for New York City real estate.”
A team led by Gary Phillips and Wes Silverman of Eastdil Secured
represented SL Green in the Sky transaction. A team led by
Marc Sznajderman of Ackman-Ziff represented SL Green in the sale of
400 East 57th Street.
About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a
fully integrated real estate investment trust, or REIT, that is
focused primarily on acquiring, managing and maximizing value of
Manhattan commercial properties. As of March 31, 2021, SL Green
held interests in 84 buildings totaling 37.8 million square feet.
This included ownership interests in 28.3 million square feet of
Manhattan buildings and 8.7 million square feet securing debt and
preferred equity investments.
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to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
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Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
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cause actual results to differ from those contained in the
forward-looking statements include risks and uncertainties related
to the on-going COVID-19 pandemic and the duration and impact it
will have on our business and the industry as a whole and the other
risks and uncertainties described in our filings with the
Securities and Exchange Commission. Except to the extent required
by law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of future events,
new information or otherwise.
SLG - A&D
Matt DiLibertoChief Financial Officer212.594.2700
SL Green Realty (NYSE:SLG)
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