SL Green Has Hard Contract for 1250 B'way

[IMGCAP(1)]NEW YORK CITY-Locally based SL Green Realty Corp. has entered into a hard contract for its sale of 1250 Broadway to Murray Hill Properties for $310 million, or approximately $463 per sf, at a capitalization rate of 4.5%. The 39-story property went on sale early January as GlobeSt.com reported. Since then, GlobeSt.com exclusively learned that Murray Hill purchased the class A property only days before the first bid was due.

At the time, Norman Sturner, MHP co-founder and principal, told GlobeSt.com that “we pre-empted the whole world. It is what we consider a coup.” Sturner went on to explain that “the teaser had been sent out” on 1250 Broadway, and first bids were to be submitted on Feb. 12. “But there were no bids. We bought it this morning [Friday, Feb. 8].”

[IMGCAP(2)]SL Green declined to discuss its disposition strategy regarding this deal when contacted by GlobeSt.com; however, company officials did note that they are pleased with the outcome. Located near Penn Station on Broadway at 31st Street, 1250 Broadway is a 670,000-sf office tower which sale caps a successful nine-year period of ownership and management by SL Green, during which time the property’s value more than tripled, according to an SL Green statement. The company acquired the building in 1999 for $93 million, and then sold a 45% interest to SITQ in 2001 in a transaction that valued the property at $126.5 million. After executing more than 630,000 sf of leases and completing a $6.8-million building renovation program, the partners recapitalized the property in October 2006, with an agreed-upon value of $260 million–at which time SL Green’s economic stake increased from 54.9% to 66.2%.