SL Green Realty agreednto sell its 40% stake in a 40-story office tower at 125 Broad Street in lower Manhattan to Mack-Cali (CLI) - Get Mack-Cali Realty Corporation Report and to buy an office property in Greenwich, Conn., from Mack-Cali.
SL Green said the condominium units at 125 Broad Street are being sold for a total of $273 million, or $520 per square foot. The units include floors 2-16. The property is 100% occupied to top caliber tenants including Citigroup and Oppenheimer. SL Green acquired its interests, which consist of 524,500 square feet of office space, in 2002 for $90 million, or $172 per square foot.
"The sale of our interests in 125 Broad is consistent with our 2007 disposition plan," the company said. "Following the acquisition of Reckson Associates, we indicated that we expect to sell as much as $1 billion of our existing portfolio this year. This is our fourth sale so far, and we are identifying other non-core holdings that will provide opportunity to harvest gains, while maintaining our Manhattan office market leadership position. At the same time, the sales proceeds from 125 Broad will be reinvested in a tax efficient manner into the recently acquired Reckson Portfolio."
The Greenwich property is being purchased by SL Green for $56 million, or $460 per square foot. Located at 500 West Putnam Ave., the property is a four-story, 121,500-square-foot office building with ample parking, and is well located in a first-class, supply-constrained submarket and it is 96% leased. Tenants include JP Morgan Chase and McMahan Securities. SL Green plans interior and exterior upgrades, along with an enhanced tenant amenity package.