NEW YORK CITY—SL Green Realty Corp., New York City's largest commercial property owner, has agreed to sell 600 Lexington Ave. for $305 million or $1,005 per square foot. The 36-story, 303,515 square-foot Midtown office building was built in 1985. The transaction is expected to close by the first quarter of 2018. The sale is expected to generate net cash proceeds of approximately $292 million.
SL Green has declined to specify the buyer except to note that it is a US-based insurance company.
Co-chief investment officer at SL Green, Isaac Zion, says the sale is part of a strategic plan that started with targeted capital improvements which increased occupancy and resulted in an opportunity to redeploy proceeds into other investments. He adds, “The transaction not only completes an exceptional investment for us, it further demonstrates continued investor demand for East Midtown assets.”
The property is currently 99% leased including office tenants MKP Capital Management, Element Capital Management, Hawkins Parnell, LLP and Herbert Mines Associates, and retail tenants Pret a Manger and FIKA coffee shop.
Darcy Stacom of CBRE represented SL Green in the sale.
SL Green acquired the property in May 2010 for $193 million in a joint venture with Sumitomo Life from Hines Investment Management. In December 2015, SL Green acquired full ownership of the building.
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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.
