SL Green Sells $305M NYC Office Asset
- Nov 21, 2017
SL Green Realty Corp. has closed the sale of 600 Lexington Ave. in Manhattan for $305 million, or $1,005 per square foot. The transaction is expected to close within the first quarter of 2018, generating net cash proceeds of $292 million.
The 36-story, 303,515-square-foot, Class A office building is LEED Gold certified and currently 99 percent leased. The property was originally built in 1983 and last underwent renovations in 2010. The asset offers 2,577 square feet of first floor retail and is home to several tenants including Transwestern, KCL Capital, GLC, Altaris and Nissan.
“The sale of 600 Lexington represents the culmination of a strategic approach that started with a distinct business plan to make targeted capital improvements in order to increase occupancy and improve the rent profile of the building, and now ends with the opportunity to redeploy the net proceeds we’ve generated into other investment prospects,” said Isaac Zion, co-chief investment officer for SL Green, in prepared remarks. “This transaction not only completes an exceptional investment for us, it further demonstrates continued investor demand for East Midtown assets.”
As part of a joint venture, SL Green acquired the property back in May 2010 for $193 million. The company then took full ownership of the property in December 2015. Darcy Stacom of CBRE represented SL Green in this transaction. As part of another joint venture in August, SL Green and TH Real Estate sold two Class A office buildings in Stamford, Conn. to CBRE Global Investors for $97 million.
Image courtesy of SL Green Realty Corp.