SL Green Announces Sales Of Three Manhattan Assets
SL Green Realty Corp. (NYSE:SLG), today announced three separate
agreements to sell its Manhattan assets located at 2 Herald Square, 180
Broadway, and 985-987 Third Avenue which will generate net cash proceeds
SL Green Realty Corp. (NYSE:SLG), today announced three separate agreements to sell its Manhattan assets located at 2 Herald Square, 180 Broadway, and 985-987 Third Avenue which will generate net cash proceeds to the Company of $240 million. The Company will sell the leased fee interest in 2 Herald Square for $365.0 million. The sale of the leased fee interest, which is improved with an existing 11-story 365,000 square foot commercial office building, is expected to close during the fourth quarter of 2014. SL Green, with its partner Jeff Sutton, have reached an agreement to sell all their interests, including their fee position and retail condominium unit, in a mixed-use college dormitory/retail asset at 180 Broadway for $222.5 million. This transaction is expected to close during the third quarter of 2014. Also, today SL Green closed on the sale of its development properties at 985–987 Third Avenue for $68.7 million. The sale was made in conjunction with the sale of an adjacent parcel, which the Company did not own. The total amount paid for the combined development site, plus development rights, was $100.0 million. Andrew Mathias, President of SL Green, stated, “While the strategic approach for each of these investments varied, we had one goal in mind: creating shareholder value. I am very pleased to say that with each of these transactions, we’ve successfully demonstrated our ability to identify, create, and harvest significant value. Our combined IRR across these three deals is in excess of 21%.” SL Green acquired the leased fee interest in 2 Herald Square in a joint venture partnership in 2007 and fully consolidated its position in 2010. Steven Kohn of Cushman & Wakefield represented SL Green in this transaction. 180 Broadway is a 24-story mixed-use property situated in the heart of downtown Manhattan adjacent to the Fulton Street transit hub. SL Green and its partner developed 180 Broadway from the ground up for Pace University. The property features three floors of retail space, leased to Urban Outfitters and TD Bank, as well as Pace’s ground lease condominium unit containing dormitory rooms serving the needs of up to 608 Pace University students. Adam Spies of Eastdil Secured acted on behalf of SL Green in this transaction.