NEW YORK--(BUSINESS WIRE)--Apr. 11, 2018--
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that, together with its joint venture partner,
Ivanhoe Cambridge, have entered into a contract to sell the leasehold
office condominium at 1745 Broadway in Manhattan for a sale price of
$633 million, or $939 per square foot, to an institutional client of
Invesco Real Estate. In addition, SL Green has separately entered into
contracts to sell two suburban office properties, 115-117 Stevens Avenue
in Valhalla, NY and Reckson Executive Park in Rye Brook, NY, to
different buyers for a combined sale price of approximately $67 million.
The sales of 1745 Broadway and 115-117 Stevens Avenue are expected to
close in the second quarter of 2018, while the sale of Reckson Executive
Park is expected to be completed in the third quarter of 2018, subject
to customary closing conditions.
These transactions are expected to generate combined net proceeds to SL
Green of approximately $190 million, which will be used for the
Company’s $1.5 billion stock repurchase program. To date, the Company
has repurchased a total of 12,258,203 shares.
1745 Broadway is a 674,000-square-foot Class-A property located in the
heart of Midtown West, just three blocks from Central Park and Columbus
Circle. The building occupies the entire block front between 55th and
56th Streets and is currently 100 percent leased.
SL Green’s Co-Chief Investment Officer, David Schonbraun, commented,
“After securing a long-term lease +extension with investment grade
tenant, Random House, and stabilizing the asset, we determined that this
was the right time to monetize our success with the property and
redeploy that capital into more accretive investment opportunities,
including our share repurchase program.”
115-117 Stevens includes two office buildings comprising a total of
178,000 square feet and Reckson Executive Park, located at 1-6
International Drive, consists of six Class-A office buildings totaling
540,000 square feet.
SL Green’s Co-Chief Investment Officer, Isaac Zion, commented, “We
continue to make strategic divestments of non-core assets to both
support the stock repurchase program and strengthen our portfolio.”
Eastdil Secured represented SL Green on the 1745 Broadway transaction.
CBRE represented SL Green on the suburban asset sales.
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York City's largest
office landlord, is a fully integrated real estate investment trust, or
REIT, that is focused primarily on acquiring, managing and maximizing
value of Manhattan commercial properties. As of December 31, 2017, SL
Green held interests in 121 Manhattan buildings totaling 50.0 million
square feet. This included ownership interests in 29.5 million square
feet of Manhattan buildings and debt and preferred equity investments
secured by 20.5 million square feet of buildings. In addition, SL Green
held ownership interests in 25 suburban buildings totaling 3.7 million
square feet in Brooklyn, Long Island, Westchester County, and
About Ivanhoé Cambridge
Ivanhoé Cambridge develops and invests in high-quality real estate
properties, projects and companies that are shaping the urban fabric in
dynamic cities around the world. It does so responsibly, with a
long-term view to generate optimal, risk-adjusted returns. Ivanhoé
Cambridge is committed to creating living spaces that foster the
well-being of people and communities, while reducing its environmental
Vertically integrated in Canada, Ivanhoé Cambridge invests
internationally alongside strategic partners and major real estate funds
that are leaders in their markets. Through subsidiaries and
partnerships, the Company holds interests in more than 1,000 buildings,
primarily in the residential, office, retail and industrial logistics
real estate sectors. Ivanhoé Cambridge held more than C$60 billion in
assets as at December 31, 2017, and is a real estate subsidiary of the
Caisse de dépôt et placement du Québec (cdpq.com),
one of Canada's leading institutional fund managers. For more
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Source: SL Green Realty Corp.
Chief Financial Officer
Green Realty Corp.