NEW YORK, April 21, 2021 (GLOBE NEWSWIRE) -- SL Green Realty Corp. (SLG) - Get Report, Manhattan's largest office landlord, has entered into a contract to sell its 20.0% interest in 605 West 42nd Street, also known as "Sky", for a gross valuation of $858.1 million and, separately, entered into a contract to sell its interests in 400 East 57 th Street for a gross valuation of $133.5 million. The Sky transaction is scheduled to close during the second quarter of 2021, while the 400 East 57 th transaction is expected to close during the third quarter of 2021, each subject to customary closing conditions.
Sky, a 71-story, 948,000 square foot luxury multifamily tower, is 90% occupied and includes 295 units of dedicated affordable housing and 68,000 square feet of retail space. The Company acquired its 20.0% interest in 2016 pursuant to a previous mezzanine loan on the property. The transaction is expected to generate net cash proceeds to SL Green of approximately $53.0 million.
400 East 57 th Street, a 211,000 square foot multifamily property, is 70% occupied and includes 263 residential units and approximately 10,000 square feet of retail space leased to essential service providers. The transaction is expected to generate net cash proceeds to SL Green of approximately $18.0 million.
"The sales of our interests in these two properties are a continuation of our strategy to divest non-core assets, including residential properties, and reinvest the capital on a value accretive basis into our share repurchase program and development projects," said David Schonbraun, Chief Investment Officer of SL Green. "We have seen a distinct rebound in the residential market in recent months, which validates the continued demand for New York City real estate."
A team led by Gary Phillips and Wes Silverman of Eastdil Secured represented SL Green in the Sky transaction. A team led by Marc Sznajderman of Ackman-Ziff represented SL Green in the sale of 400 East 57 th Street.
About SL Green Realty Corp.
SL Green Realty Corp., Manhattan's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2021, SL Green held interests in 84 buildings totaling 37.8 million square feet. This included ownership interests in 28.3 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
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SLG - A&D
Matt DiLibertoChief Financial Officer212.594.2700