SL Green Sells Stake in Midtown Resi Building

SL Green has sold a 49% ownership interest in 400 E. 57th St. to an investment account managed by BlackRock.

NEW YORK CITY—SL Green Realty Corp. and BlackRock Real Assets—the real assets arm of BlackRock—have formed of a joint venture for the ownership of 400 E. 57th St., a rental apartment property in Midtown. The transaction constitutes a sale by SL Green of a 49% ownership interest in the entity to an investment account managed by BlackRock at a gross asset valuation of $170 million.

In conjunction with the recapitalization of the property, New York Community Bank provided a 10-year $100 million mortgage loan at a 3% fixed interest rate. Andrew Scandalios and Rob Hinckley of HFF represented SL Green on the transaction.

“BlackRock continues to target high-quality assets in major markets as a means of seeking to deliver attractive risk-adjusted returns to our clients, says Benjamin Young, managing director and head of US real estate separate accounts at BlackRock Real Assets. “The 400 E. 57^th St. investment fits very favorably within our investment strategy given its gateway market location, current income, and the potential for future value creation. The partnership expects to continue to add value through a unit upgrade program and enhancement to the common areas and amenities.”