NEW YORK CITY-SL Green Realty Corp. has entered into an agreement to sell 470 Park Ave. S in Manhattan for $157 million, or approximately $604 per sf, to an undisclosed institutional owner of real estate. The sale will generate a gain of approximately $118.4 million for SL Green. The proceeds will be used in a “tax-efficient manner” as part of a 1031 exchange corresponding with the recent acquisition of the balance of interests in One Madison Ave. for $148 million, as GlobeSt.com reported.

Built in 1912, the 260,000-sf, 17-story plus penthouse office building is located on Park Avenue South between 31st and 32nd streets. The property was contributed to the SL Green portfolio in 1997 in connection with the company's initial public offering, at the same time the company purchased 673 First Ave., 1414 Sixth Ave., 29 West 35th St., 70 W. 36th St. and 36 W. 44th. The Park Avenue South building is currently 96% leased to tenants including USI of New York Inc., Horizon Asset Management, Peppercom Inc. and Burns McClennan.

“Our successful disposition of 470 Park Ave. S demonstrates the market's continuing strong appetite for quality New York City office properties,” notes SL Green CEO Marc Holliday in a prepared release. “While some high-leverage investors are being forced to the sidelines due to the tightening of credit, we see well-capitalized institutional buyers recognizing new opportunities and taking advantage of them.” Holliday continues that “on our part, we continue to divest ourselves of non-core and mature assets, enabling us to recycle capital and take advantage of strategic opportunities that we believe will fuel our long-term earnings growth.”