New York City-based SL Green Realty Corp., New York City’s largest office landlord, recently revealed that, together with its joint venture partner, Ivanhoe Cambridge, have entered into a contract to sell the leasehold office condominium at 1745 Broadway in Manhattan. The sale price was $633 million, or $939 per square foot.
The buyer was an institutional client of Invesco Real Estate. In addition, SL Green has separately entered into contracts to sell two suburban office properties, 115-117 Stevens Avenue in Valhalla, NY and Reckson Executive Park in Rye Brook, NY to different buyers for a combined sale price of approximately $67 million.
The sales of 1745 Broadway and 115-117 Stevens Ave. are expected to close in the second quarter of 2018, while the sale of Reckson Executive Park is expected to be completed in the third quarter of 2018, subject to customary closing conditions.
According to SL Green sources, the transactions are expected to generate combined net proceeds to SL Green of approximately $190 million, which will be used for the company’s $1.5 billion stock repurchase program. To date, the company has repurchased a total of 12,258,203 shares.
1745 Broadway is a 674,000-square-foot class-A property located in the heart of Midtown West, just three blocks from Central Park and Columbus Circle. The building occupies the entire block front between 55th and 56th Streets and is currently 100% leased.
SL Green’s co-chief investment officer, David Schonbraun, explains that “After securing a long-term lease +extension with investment grade tenant, Random House, and stabilizing the asset, we determined that this was the right time to monetize our success with the property and redeploy that capital into more accretive investment opportunities, including our share repurchase program.”
115-117 Stevens includes two office buildings comprising a total of 178,000 square feet and Reckson Executive Park, located at 1-6 International Drive, consists of six Class-A office buildings totaling 540,000 square feet.
SL Green’s Co-Chief Investment Officer, Isaac Zion, explains that the company continues to make “strategic divestments of non-core assets to both support the stock repurchase program and strengthen our portfolio.”
Eastdil Secured represented SL Green on the 1745 Broadway transaction. CBRE represented SL Green on the suburban asset sales.