SL Green Realty has agreed to sell its 25.0% interest in the commercial condominium units located at 55 West 46th Street, also known as Tower 46, a newly constructed office tower in the center of Midtown Manhattan, for $275.0 million, or $793 per square foot, to a Brookfield Asset Management real estate fund.
SL Green said the transaction is expected to close during the first quarter of 2021 and generate net cash proceeds to the company of approximately $20.0 million.
“The sale of our interest in Tower 46 is another step in our strategy to divest of non-core assets and accretively reinvest the capital into our share repurchase program,” said David Schonbraun, Chief Investment Officer of SL Green.
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“The transaction also serves to further demonstrate the resiliency of the Manhattan office market and the continued demand by institutional investors for well-located, Class A real estate assets in Midtown,” he added.
SL Green acquired the commercial condominium units at the property, consisting of office floors 2, 22 – 34, a retail store on 46th street and the building’s parking garage and fitness center, in 2014.
Paul Gillen, Anthony Ledesma, and Kyle van Buitenen of Hodges Ward Elliott represented SL Green in the sale.