SL Green will re-invest $70 million in proceeds from the sale of a Gowanus development site into its own stock.
The company confirmed on Monday that is has sold 175-225 Third Street in Gowanus for $115 milliopn.
SL Green owned 95 percent of the property in a joint venture with Kushner and LIVWRK, who had originally planned to build a housing and “artists maker” development along with an esplanade along the canal. The three-acre development site was acquired by the joint venture in 2014 for $72.5 million.
In a statement, SL Green said the sale is expected to close in the first quarter of 2018 and will generate net proceeds to the REIT of approximately $70 million.
Proceeds from the sale are expected to be used to continue the company’s stock repurchase program, which it expanded in December 2017 to $1.5 billion.
To date, the Company has repurchased a total of 11,854,335 shares at an average price of $100.30.
“Our ability to readily monetize assets at attractive valuations in a market where there is significant appetite for investment enables us to repurchase our stock at a meaningful discount to the private market valuation of New York City real estate, while maintaining liquidity for future investments and conservative leverage levels,” said Andrew Mathias, president of SL Green.
“SL Green is pleased to have partnered with Kushner and LIVWRK on this investment, which yielded excellent results for all stakeholders in the joint venture.”
SL Green has been working to build shareholder value through a buyback program launched in the summer of 2016. the move has helped boost investors confidence in the stock, according to market analysts.
RFR Realty was the buyer of the Gowanus site, according to Crains. RFR has previously partnered with Kushner Cos. to buy an office complex in Dumbo.
