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SL Green's Holliday: 485 Lex Sale Likely

NEW YORK CITY-The REIT's CEO said in an earnings call Tuesday that the 926,122-square-foot property could go under contract sometime this quarter.

By Paul Bubny | Updated on July 28, 2009

NEW YORK CITY-The “off again, on again” sale of SL Green Realty Corp.’s 485 Lexington Ave., which the REIT bought from TIAA-CREF in 2005 for $225 million, may soon be a reality, CEO Marc Holliday said in an earnings call Tuesday. Holliday said SL Green is “weighing offers” from interested buyers and the 926,122-square-foot office tower is likely to go under contract some time during the third quarter.

If the 485 Lexington asking price, reportedly north of $500 million, is met, it would mean “$450 million off our balance sheet in one fell swoop,” said Holliday. SL Green refinanced the property for that amount in January 2007, with the loan maturing in 2017.

One thing that the “intermittent” marketing of 485 Lexington has demonstrated is that “there continues to be a broad base of buyers, both foreign and domestic, looking for bargains in Manhattan,” said Andrew Mathias, president and chief investment officer. He noted that the sale of Worldwide Plaza, which closed last week, demonstrated that even in the current market, a well-organized investment group was willing to take on a leasing risk of 600,000 vacant square feet “and still write a check for $200 million.”

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