SL Green had another strong quarter across its business and the New York City market in which the company operates. “We have a very deliberate plan and we are executing on it in a way that drives value across our portfolio and continues to be justified by a robust New York City jobs, capital markets and leasing environment,” said Andrew Mathias, president and director on the firm’s Q2 earnings call.
He explained that New York City OMB again raised its 2019 jobs forecast for both private sector and office using employment by about 25% in each category to 71,000 and 26,000, respectively. “And hiring to date in most major sectors continue the pace as the job space continues to diversify away from the FIRE sector in New York City.”
He explained that the company signed 40 leases, covering more than 500,000 feet this quarter. “Well ahead of projections as leasing pay shows no signs of slowing up.”
The company closed on the sale of 521 Fifth Avenue, and also finally converted its structure investment in 460 West 34th Street into a controlling equity interest in the property, coupled with efficient acquisition financing and the masterstroke of signing First Republic Bank to a major lease of the property prior to closing.
“We expect a newly redeveloped 460 West 34th Street to become a signature asset for us in the far west side. Also, in the quarter, we acquired the remaining interest in 110 Greene Street, an asset that’s performed very well for us and we believe has significant upside yet to be achieved.”
As for the NYC market, he said that the real estate business “is as active as we have seen it in the dog days of summer here and all our various disciplines here at SL Green are busy executing on the business plan.”