SL Green Spends $80M, Now Owns Entire Block in Midtown

The latest Midtown pickup the approximately $80 million purchase of 51 E. 42nd St., an 18-story, 142,000-square-foot office building that faces Grand Central Terminal by SL Green.

December 6, 2011
By Nicholas Ziegler, News Editor

Nothing stops deals in Midtown in 2011 – not economic climate, not time of year. The latest pickup this month is the approximately $80 million purchase of 51 E. 42nd St., an 18-story, 142,000-square-foot office building that faces Grand Central Terminal along Vanderbilt Avenue.

With the acquisition, 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.

SL Green co-CEO Isaac Zion called the deal one of the firm’s “strategic investments that position the company for long-term growth.”

According to a report by CBRE Group Inc., Midtown Manhattan recorded 830,000 square feet of leasing activity in October, lagging its five-year monthly average of 1.17 million square feet by 29 percent. The month’s leasing was offset by the addition of several new availabilities to the market, fueling negative absorption of 260,000 square feet and driving a 0.1 point increase in the availability rate.

The availability rate, according to a report by Colliers international, is “more forward-looking because it indicates the space that is currently being marketed for occupancy currently and in the near future, regardless as to whether that space is currently occupied.”

The building is currently 94 percent occupied.