SL Green Realty Corp,, Manhattan’s largest office landlord, has entered into a contract to sell its 20 percent interest in 605 West 42nd Street, also known as Sky, back to Joe Moinian for $53 million.
The deal values the 71-story, 948,000 s/f luxury multifamily tower (pictured top) at $858 million.
The company is also selling its interests in 400 East 57th Street for $18, making a gross valuation of $133.5 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.”
The Sky transaction is scheduled to close during the second quarter of 2021, while the 400 East 57th 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 percent occupied and includes 295 units of dedicated affordable housing and 68,000 s/f of retail space. The Company acquired its 20 percent interest in 2016 pursuant to a previous mezzanine loan it made with on the property developed by the Moinian Group in 2017.
“The Moinian Group has had a long and prosperous relationship with SL Green and the reacquisition of Sky’s remaining interest has only enhanced our collaborations,” said firm’s CEO Joseph Moinian. “We have immense respect for SL Green and look forward to working with them on many other transactions in the years to come.”
Located on West 42nd Street between 11th and 12th Avenues, Sky has 1,175 apartment units and nearly 68,000 s/f of retail space with Volvo occupying 58,626 s/f. The residential units are fully leased, while LifeTime Fitness occupies 65,228 s/f of indoor and outdoor space.
According to published reports, A&E Real Estate is buying the stake in 400 East 57th Street, 263-unit multifamily property that is 70 percent occupied and includes 263 residential units and approximately 10,000 s/f of retail space leased to essential service providers. A&E also acquired 400 East 58th Street from SL Green last year for $62 million.
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 57th Street.