SL Green Announces Sale of 521 Fifth Avenue for $381 Million
March 28 2019 - 8:59AM
Business Wire
A joint venture between SL Green Realty Corp. (NYSE: SLG), New
York City’s largest office landlord, and an institutional
investment partner, entered into an agreement today to sell 521
Fifth Avenue to Savanna, a New York City based real estate
investment manager, owner/operator, and developer. The 39-story,
460,000-square-foot Midtown Manhattan office building will be sold
for a gross sales price of $381 million. This transaction is
expected to close in the second quarter of 2019, subject to
customary closing conditions.
The sale is expected to generate net cash proceeds to SL Green
of approximately $100 million. SL Green owns a 50.5% interest in
the joint venture.
SL Green's Co-Chief Investment Officer, Isaac Zion, commented,
"This transaction demonstrates the strong demand for quality assets
in East Midtown, Manhattan’s preeminent business district.” He
continued, “We saw incredible interest in this property from
numerous investors.”
SL Green acquired the leasehold interest in the property in
March 2006 and subsequently took ownership of the fee interest in
April 2011 before entering into a joint venture with an
institutional investment partner in the fourth quarter
of 2012.
Darcy Stacom and Bill Shanahan of CBRE represented the sellers
in this transaction.
About SL Green Realty
Corp.
SL Green Realty Corp., an S&P 500 company and New York
City'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 December 31, 2018, SL Green held interests in 101 Manhattan
buildings totaling 46.0 million square feet. This included
ownership interests in 27.8 million square feet of Manhattan
buildings and 18.2 million square feet of buildings securing debt
and preferred equity investments. In addition, SL Green held
ownership interests in 7 suburban properties comprised of 15
suburban buildings totaling 2.3 million square feet in Brooklyn,
Westchester County, and Connecticut
About Savanna
Savanna, formed in 1992, is a vertically-integrated real estate
investment manager based in New York City and focused on strategic
property investments throughout the City’s five boroughs. The firm,
led by Managing Partners Christopher Schlank and Nicholas
Bienstock, pursues real estate equity and debt asset investments,
including ground-up development and major repositioning projects.
Savanna’s equity investments target value add/opportunistic returns
by adding value through asset management and/or property
development, redevelopment, and repositioning, deploying a team of
more than 35 experienced investment, asset management,
construction, and leasing professionals.
Forward-looking Statement
This press release includes certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and are intended
to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and we caution you not to
place undue reliance on such statements. Forward-looking statements
are generally identifiable by the use of the words "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "intend,"
"project," "continue," or the negative of these words, or other
similar words or terms.
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
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements are described in our filings with the
Securities and Exchange Commission. 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
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SL Green Realty Corp.slgreen@berlinrosen.com646.452.5637Matt
DiLibertoChief Financial Officer212.594.2700
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