SL Green Realty Corp. (NYSE: SLG) today announced an agreement to sell a 49.5% equity interest in 521 Fifth Avenue for $72 million to Plaza Global Real Estate Partners, a venture between Quantum Global Real Estate and LaSalle Investment Management. The transaction is expected to close before year-end 2012.
Upon closing, the Company anticipates it will refinance the in-place $150 million mortgage with a new $170 million mortgage financing. SL Green will receive approximately $86 million in net proceeds from the completed transaction.
521 Fifth Avenue, a boutique office building located on the northeast corner of Fifth Avenue and East 43rd Street, was initially acquired by a joint venture led by SL Green in 2006 with SL Green taking full ownership in 2011.
Andrew Mathias, President of SL Green, commented, “The partial sale unlocks proceeds we intend to use to fuel our continued growth and allows us to benefit from the potential of this well located, top-quality asset. We look forward to continuing our successful track record of building value for joint venture partners with Quantum Global and LaSalle. This investment again highlights Manhattan’s extraordinary appeal to leading institutional investors.”
Antoine Castro, Managing Director of Quantum Global Real Estate, said, “This reinforces Plaza’s commitment to buying core properties in leading locations. It also underlines our strategy to acquire value-preserving premium assets. We are enthusiastic about partnering with New York’s premier office landlord in this iconic property.”
Simon Marrison, Europe CEO, LaSalle Investment Management, added, “We are very excited that 521 Fifth Avenue is Plaza’s first investment in New York City. It is a great location for office and retail tenants alike, and we have a strong partner in SL Green. We expect it to be a long-term quality investment.”
The transaction is subject to customary closing conditions and there can be no assurance as to when the conditions precedent contemplated in the sale agreement will be fulfilled, or that the transaction will be consummated.