SL Green is getting ready to deploy the $1 billion war chest it has built up for acquisitions.
At the start of the year, the REIT disclosed in a quarterly earnings statement that it planned to start raising funds for a $1 billion opportunity debt vehicle targeting New York City.
Now, according to statements from an executive at the company, not only is it ready to deploy the accumulated capital but it expects to raise more than the initial target of $1 billion. “Our expectations now, based on investor demand, is that we should be out surpassing that $1 billion goal that we set for ourselves,” said Harrison Sitomer, SL Green’s chief investment officer, at an industry conference last week in New York. “I wouldn’t be surprised to see that number be higher than a billion just based on the feedback we had received,” he said, according to MarketWatch.
Sitomer also said that SL Green already has a pipeline of $300 million to $400 million in deals for the fund, which are earmarked for 2024 and the first half of 2025.
He was also bullish about the opportunities the fund will have in New York City. “I think right now is the most optimistic I’ve heard from investors about New York City, specifically, and the differentiation of New York to the rest of the office markets throughout the country — and that demand has really led investors to looking at New York as a safe haven and a place to invest,” he said.