NEW YORK CITY—SL Green Realty Corp. has agreed to sell a property in Lower Manhattan and buy commercial condominium units in Midtown.
In Lower Manhattan, SL Green and joint venture partner the Moinian Group, have agreed to sell 180 Maiden Lane for $470 million. The buyer is a venture led by Murray Hill Properties and Clarion Partners, a leading real estate investment manager. The sale is expected to close during the fourth quarter of this year. Meanwhile, SL Green is buying commercial condos at 55 West 46th Street for $275 million
Says SL Green Co-CIO Isaac Zion of the Downtown sale, “We are very pleased with the outcome of our investment in 180 Maiden Lane. It represents the most recent example of what we believe is our unsurpassed ability to find intrinsic value in an asset and to generate significant returns for our shareholders, as evidenced by our internal rate of return on the investment of approximately 16%. The monetization of our equity in this transaction will allow us to redeploy capital into other value-creating opportunities.”
Adds Joseph Moinian, president and CEO of the Moinian Group says, “We are thrilled with the outcome at 180 Maiden Lane and look forward to future opportunities with our excellent partners at SL Green.”
SL Green and Moinian were represented on the deal by Greenberg Traurig attorneys Stephen L. Rabinowitz, Kristen J. Lonergan and Jenny S. Liang, along with labor and employment shareholder Jerrold F. Goldberg.
Meanwhile, SL Green will acquire 319,000 square feet consisting of vacant office space on floors 22–34, a retail store on 46th street and the building's parking garage and fitness center. As part of the agreement, the seller has the option to include the second floor in the transaction, which consists of 28,000 square feet, for an additional purchase price of $20 million. The transaction, which is subject to customary closing conditions, is expected to be completed before the end of 2014.
Says SL Green president Andrew Mathias, “This is a magnificent asset in the heart of Midtown Manhattan. The acquisition demonstrates our strength in sourcing and executing off-market transactions. Being able to acquire the most valuable office space, only the tower floors, of a newly constructed office building at a price that is significantly below replacement cost is a rare opportunity.”
He continues, “We believe this transaction will once again allow us to showcase two of our greatest strengths: SL Green's proven ability to lease office space and create value.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
