NEW YORK CITY—SL Green Realty Corp., New York City's largest office landlord, entered a contract to sell a 43% interest in 1515 Broadway to Allianz Real Estate, the real estate investment and asset manager of the Allianz Group, a German financial services company, headquartered in Munich.
The deal values the 1.86 million square-foot Times Square office tower at $1.95 billion or $1,045 per square foot. Approximately 70% of the transaction is expected to close on Nov. 30, 2017. The remainder is expected to close in the first quarter of next year. SL Green will receive approximately $416 million in cash, following the final closing.
The sale defies recent trends of office relocations to Hudson Yards.
“This transaction speaks to the continued strong interest from overseas investors in New York City office assets as well as the strength of the Times Square office and retail market,” says SL Green's president, Andrew Mathias.
In 2002, SL Green purchased 1515 Broadway, also known as One Astor Plaza, in a joint venture and secured full control of the building in 2011. In 2012, following a comprehensive redevelopment and repositioning of the retail space, Viacom signed a long-term lease renewal through 2031.
The building, originally completed in 1972, is on Broadway, between 44th and 45th streets. In addition to Viacom, the 57-story tower is currently 98% leased and houses retail tenants: Skechers, Swatch, Oakley, Kiko Milano, Line Friends, and the Minskoff Theatre, one of the city's largest live performances spaces.
Doug Harmon and Adam Spies of Cushman & Wakefield represented SL Green in this transaction.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
