SL Green Takes 785 Third and 485 Lexington for $480M

NEW YORK CITY-SL Green adds two more assets to its portfolio as the REIT picks up 750 Third Ave. and 485 Lexington Ave. from TIAA-CREF for a total of $480 million or approximately $282 per sf. Together, the properties occupy a full city block and comprise 1.7 million sf in the Grand Central submarket. This deal ups SL Green’s portfolio to 15.4 million sf. Richard Baxter, Yoron Cohen and Scott Latham of Cushman and Wakefield represented Teacher’s Insurance in the transaction.

Specifically, 750 Third will be purchased by SL Green as a wholly-owned asset for $255 million, while 485 Lexington will be acquired in a joint venture with the City Investment Fund LP for $225 million. SL Green expects to own approximately 37.5% of the equity interests in that property.

At closing, TIAA-CREF, will enter into an operating lease for the entire building at 750 Third. At the expiration of that agreement in December 2005, the building will be approximately 25% vacant. In January, Fairchild Publications inked a 17-year deal to move operations to 234,000-sf at the site. Built in 1958 at the corner of 47th Street and Third Avenue, the 34-story property comprises 761,057 net leaseable sf. Other tenants include First Commercial Bank, Eisner LLP and Buckingham Research Group.