NEW YORK CITY—SL Green Realty's joint venture with Kushner Cos. and LIVWKR is selling a three-acre development site at 175-225 Third St. in Gowanus, Brooklyn to RFR Realty. The gross asset valuation of the 140,000 square-foot property is $115 million. Crain's has reported the sale price is rumored to be $120 million.
SL Green owns 95% of the joint venture, which purchased the site in 2014 for $72.5 million. The RFR Realty transaction is expected to close by the end of March, and will generate net proceeds to SL Green of $70 million.
The company has announced it will use the proceeds from the sale to continue its stock repurchase program, which it expanded in December 2017 to $1.5 billion. To date, the company has repurchased a total of 11,854,335 shares at an average price of $100.30.
Globest.com previously reported that it is anticipated that Gowanus will be rezoned, as part of Mayor Bill de Blasio's plans to increase housing. This will boost development opportunities in the area.
Crain's reported that some real estate investors had viewed Jared Kushner's interest in the Gowanus property as problematic and troublesome to some city officials involved in the potential Gowanus rezoning. The article quoted councilman Brad Lander's interview with WNYC, in which he stated voting to take part in enriching a White House senior advisor “feels ethically tainted” and not something he could do or endorse.
In addition, multiple news sources continue on an ongoing basis to report on investigations of Kushner, involving possible collusion with Russia in interfering with the 2016 elections, efforts to generate foreign investments, and loans received from US financial institutions while serving as senior advisor to the White House. Last Friday, Kushner's security clearance had been downgraded to a level allowing far less access to classified information, as reported in The Washington Post.
Crain's further noted SL Green is the second major real estate company seeking to part ways with Kushner Cos. It reported Vornado is working to sell its 49.5% interest in 666 Fifth Ave. to the Kushners, who co-own the property.
In a statement regarding the recent Gowanus sale, SL Green president, Andrew Mathias, provided limited comments saying, “SL Green is pleased to have partnered with Kushner and LVIWRK on this investment, which yielded excellent results for all stakeholders in the joint venture.”
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