SL Green Adds to NYC Office Portfolio with $252M, 390 KSF Pickup
- Jan 11, 2012
January 11, 2012
By Nicholas Ziegler, News Editor
SL Green has made yet another pickup in Midtown New York City with its $252.5 million acquisition of 10 E. 53rd St. The 390,000-square-foot, 37-story office tower sits between 5th and Madison Avenues in the city’s Plaza District and is currently the headquarters of publishing company Harper Collins.
Noting his company’s recent successes at 100 Church St. and 3 Columbus Cir., Andrew Mathias, president of SL Green, said he believes “this Midtown office tower will become a highly coveted address in the Plaza submarket.”
The property, acquired for approximately $657 per square foot, is currently 91 percent leased. Since 60 percent of the existing leases are set to expire in the next three years, the company is looking at what it called “an opportunity to take advantage of what SL Green management believes are in-place rents that are substantially below market.”
The company has been on a tear of late. With the purchase of 51 E. 42nd St. in December of last year, SL Green now owns the entire city block that is bounded by Madison and Vanderbilt Avenues between East 42nd and East 43rd Streets. The company purchased 317 Madison in 2001, and both 331 Madison and 48 E. 43rd were acquired in 2007.
As Commercial Property Executive previously reported, the Manhattan office market may be taking a pause in the first few months of 2012. But there are significant signs of strength remaining, as vacancy rates are low, at 5.9 percent at year’s end, which is half of the national average, according to a report by Colliers International. Average asking rents led other regional office markets, climbing 10 percent in 2011 to $54.23 per square foot – a huge rise from the $48.62 posted at the beginning of the year.
Addtionally, CBRE Group Inc. noted in December that Midtown posted 1.24 million square feet of leasing activity, topping its five-year monthly average of 1.18 million, and that the 15.17 million square feet of leasing recorded through November 2011 fell just short of year-to-date 2010’s 15.23 million.