Largest Commercial Property Sale in the U.S. Since March
SL Green Realty Corp (NYSE: SLG), Manhattan’s largest office landlord, today announced that together with its partners, it has entered into a contract to sell 410 Tenth Avenue, the 636,000-square-foot Manhattan office redevelopment anchored by Amazon and First Republic Bank, for gross consideration of $952.5 million.
SL Green currently owns 70.9% of the venture. As part of the sale, the venture is retaining a 5% interest through completion of the property’s redevelopment. The transaction is expected to close during the fourth quarter of 2020, subject to customary closing conditions.
“The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit rated tenants,” said Brett Herschenfeld, Managing Director of SL Green. “This transaction is a perfect example of what SL Green has demonstrated successfully so many times — acquiring an undervalued asset in an off-market manner through our deep market relationships, creatively redeveloping it to class-A standards, and re-leasing the property to high quality tenants on a long-term basis. While the asset was always intended to be held as a long-term investment, the sale will allow the Company to achieve extraordinary profits, substantially reduce consolidated indebtedness and generate additional liquidity for share repurchases.”
SL Green is currently executing a comprehensive, building-wide redevelopment of the 20-story, future Class-A office building, which is expected to be completed in the third quarter of 2021.
Darcy Stacom of CBRE represented SL Green in the transaction.
About SL Green
SL Green Realty Corp., an S&P 500 company and 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 September 30, 2020, SL Green held interests in 93 buildings totaling 40.6 million square feet. This included ownership interests in 29.2 million square feet of Manhattan buildings and 10.3 million square feet securing debt and preferred equity investments.
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