SL Green Ups Investment in Manhattan High-Rise to $148M

The office landlord has completed the second phase of its preferred equity stake in 245 Park Ave., after an initial investment earlier this year.
245 Park Ave.

SL Green has completed the second phase of its preferred equity investment in 245 Park Ave., in New York City. The office landlord made its initial investment in 245 Park during the second quarter of 2018 and along with the recent closing, the investment now totals $148.2 million.

“SL Green has an unparalleled track record in managing top commercial assets throughout New York City, with a particular emphasis on East Midtown, attracting world-renowned firms and offering best-in-class building management. We are thrilled to partner with them at 245 Park Avenue, which stands at the center of Manhattan’s most prominent office corridor,” said Daniel Chen, chairman & CEO of HNA Group North America LLC, a wholly owned subsidiary of HNA Group, in prepared remarks.

The 44-story, 1.7 million-square-foot asset is among the largest buildings on Park Avenue and provides direct access to Grand Central Terminal. Occupying the entire block between 46th and 47th streets, the property is currently 91 percent leased and is home to firms like Société Générale S.A., Angelo Gordon, Rabobank and Ares Capital.

Benjamin Lambert, Evan Layne and David Lazarus from Eastdil Secured represented HNA in the deals.

In 2015, SL Green Realty announced plans to build a $3 billion, 63-story office tower next to Grand Central Terminal, after agreeing to a deal with New York City officials to make $220 million in transit improvements. 

Image courtesy of Yardi Matrix