SL Green Realty Corp has agreed to sell 600 Lexington Avenue, a midtown Manhattan office building, for $305 million. The buyer was not named. The deal is expected to close by the first quarter of 2018.
NEW YORK–(BUSINESS WIRE)–SL Green Realty Corp. (NYSE:SLG), New York City’s largest commercial property owner, today announced an agreement to sell 600 Lexington Avenue, a 36-story, 303,515 square foot Midtown Manhattan office building, for a gross sales price of $305.0 million, or $1,005 per square foot. This transaction is expected to close by the first quarter of 2018, subject to customary closing conditions.
The sale is expected to generate net cash proceeds of approximately $292 million.
SL Green’s Co-Chief Investment Officer, Isaac Zion, commented, “The sale of 600 Lexington represents the culmination of a strategic approach that started with a distinct business plan to make targeted capital improvements in order to increase occupancy and improve the rent profile of the building, and now ends with the opportunity to redeploy the net proceeds we’ve generated into other investment prospects.” He continues, “This transaction not only completes an exceptional investment for us, it further demonstrates continued investor demand for East Midtown assets.”
SL Green acquired the property in May 2010 for $193 million, through a joint venture, and subsequently took full ownership of the property in December 2015. The property is currently 99% leased.
Darcy Stacom of CBRE represented SL Green 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 September 30, 2017, SL Green held interests in 118 Manhattan buildings totaling 47.8 million square feet. This included ownership interests in 27.5 million square feet of Manhattan buildings and debt and preferred equity investments secured by 20.3 million square feet of buildings. In addition, SL Green held ownership interests in 27 suburban buildings totaling 4.3 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey. To be added to the Company’s distribution list or to obtain the latest news releases and other Company information, please visit our website at www.slgreen.com or contact Investor Relations at (212) 594-2700.