SL Green Realty Corp., New York City’s largest office landlord, announced an agreement to sell its 48.9 percent interest in 3 Columbus Circle to The Moinian Group, the current owner of the remaining 51.1 percent interest.
The sale is expected to generate net consideration of approximately $223.0 million and will close in the fourth quarter of 2018, subject to customary closing conditions.
SL Green acquired its interest in the 753,000 s/f property in 2011. Upon acquisition, SL Green and The Moinian Group initiated a repositioning strategy which transformed the property into a Class-A corporate address featuring Central Park views, prime retail, and state-of-the-art building systems and amenities.
Upon completion of the capital program in 2012, a 214,000 s/f condominium interest was sold to international marketing firm Young & Rubicam for $143.6 million, with the firm also signing a lease to serve as the anchor tenant of the remaining 539,000 s/f condominium.
“The recent lease up of the vacant retail space marks the successful completion of SL Green and The Moinian Group’s repositioning of 3 Columbus Circle” said David Schonbraun, Co-Chief Investment Officer at SL Green.
“With these significant improvements, we have transformed the property into a premier Columbus Circle asset, and have created substantial long-term value, as evidenced by our anticipated internal rate of return in excess of 15% on the investment. We believe now is the time to monetize our investment and recycle the capital into more accretive opportunities, while taking advantage of minimal transaction costs. The Moinian Group has been a great partner with whom we have had consistent shared success, and we look forward to working with them in the future.”
3 Columbus Circle is currently 95 percent leased. Major tenants include eMerge 212 and Jazz at Lincoln Center.
The retail premise is anchored by Nordstrom’s flagship location, which opened in April, 2018 and is the retailer’s first New York City location.