SL Green Plans $750M of Dispositions in Q1

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NEW YORK CITY-Following the closing of the merger with Reckson Associates Realty Corp. earlier this month and positive increases in FFO for 2006 and Q4, SL Green Realty Corp. executives said the firm plans at least $750 million of dispositions this quarter. Two recent building sales have already made that goal easily attainable.

SL Green, SITQ Group, and SEB Immobilien-Investment GmbH sold One Park Ave. for $550 million or $602 per sf. The building sold at a cap rate of 3.5%, CIO Andrew Mathias said during Tuesday’s investor conference. The 913,000-sf, 20-story office building was purchased by SL Green in January 2001 and recapitalized in May of that year bringing SITQ in as a joint partner. Three years later 75% of the property was sold to Credit Suisse who flipped its portion to SEB. Maintaining 16.7% ownership, SL Green will receive about $108 million from the sale.