SL Green Realty (SLG) To Sell 600 Lexington Avenue For $305M
Zacks Investment Research | Nov 16, 2017 08:40PM ET
SL Green Realty (NYSE:SLG) announced that it has entered into an agreement to sell 600 Lexington Avenue, a Midtown Manhattan office building, for a gross consideration of $305 million or $1,005 per square foot.
The transaction is subject to customary closing conditions and will likely close by first-quarter 2018. The deal is anticipated to generate approximately $292 million cash proceeds for SL Green.
Located in the centre of the Plaza District, at the corner of 52nd Street and Lexington Avenue, this property is a 36-story office tower spanning 303,515 square feet of space. SL Green bought this office space in May 2010, through a joint venture, for $193 million and eventually acquired full ownership in December 2015.
SL Green strategically improved the building by putting an extensive renovation plan in place. The overhaul upgraded the entire building, including modernization of the lobby and elevators.
Such transformative redevelopments helped enhance the building’s profile and attract new tenants. Currently, this building is 99% leased. Its impressive tenant roster includes companies such as Element Capital Management, MKP Capital Management and Hawkins Parnell Thackston & Young.
Per management, the above-mentioned sale is in line with the company’s efforts to improve its capital position and focus on other assets which exhibit strong occupancy and rental growth. It also reflects the demand for office assets in the Midtown area.
Further, on Nov 14, the companyentered into a contract to sell 43% stake in 1515 Broadway to Allianz (DE:ALVG) Real Estate — the real estate investment division of German-based company Allianz Group. The deal values the Class-A Times Square (NYSE:SQ) office property at $1.95 billion and is anticipated to generate $416 million in cash proceeds for SL Green. (Read more: Original post
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