SL Green Realty Corp. has agreed to sell its 20% interest in 605 West 42nd Street, also known as “Sky”, for $858.1 million and, separately, agreed to sell its interests in 400 East 57th Street for $133.5 million.
“The sales of our interests in these two properties are a continuation of our strategy to divest non-core assets, including residential properties, and reinvest the capital on a value accretive basis into our share repurchase program and development projects,” said David Schonbraun, Chief Investment Officer of SL Green.
“We have seen a distinct rebound in the residential market in recent months, which validates the continued demand for New York City real estate,” he added.
Sky, a 71-story, 948,000 square foot luxury multifamily tower, is 90% occupied and includes 295 units of dedicated affordable housing and 68,000 square feet of retail space. The company acquired its 20.0% interest in 2016 pursuant to a previous mezzanine loan on the property. The transaction is expected to generate net cash proceeds to SL Green of approximately $53.0 million.
400 East 57th Street, a 211,000 square foot multifamily property, is 70% occupied and includes 263 residential units and approximately 10,000 square feet of retail space leased to essential service providers. The transaction is expected to generate net cash proceeds to SL Green of approximately $18.0 million.
The Sky transaction is scheduled to close during the second quarter of 2021, while the 400 East 57th transaction is expected to close during the third quarter of 2021, each subject to customary closing conditions.