SL Green Realty Corp. , New York City’s largest office property owner, and private investment manager, RXR Realty, today announced that they have signed an agreement to acquire a combined 48.7 percent interest in Worldwide Plaza, a Class A, trophy asset located in Midtown Manhattan.
The interest is being sold by New York REIT, which will continue to own the remaining equity with WWP Sponsor, LLC, its existing partner.
The transaction, which is expected to be completed in the fourth quarter of 2017 subject to customary closing conditions, values the asset at $1.725 billion.
“With convenient access to transit, a slate of top-tier tenants, and a historic reputation, the iconic Worldwide Plaza building is poised for a big future. We look forward to working with NYRT and SL Green to further enhance Worldwide Plaza’s position as a commercial destination in Midtown West”
Worldwide Plaza, developed in 1989, consists of a 49-story, 1.8 million-square-foot Class A office tower, a 252,000 s/f retail building with a parking garage, and a large open-air plaza. The property is part of a mixed-use development that encompasses an entire block between 49th and 50th streets and between 8th and 9th avenues.
The office building serves as the North American Headquarters for Nomura Holdings, Inc. and Cravath Swaine and Moore LLP, as well as office tenants WebMD, WNet.org, the Rubenstein public relations organization and CBS Broadcasting. The retail building features a five-stage off-Broadway theater, a 475-space parking garage and TMPL, a fitness gym. The complex is 100 percent leased.
Worldwide Plaza sits at the juncture of Manhattan’s Columbus Circle and Times Square submarkets, and north of the emerging Hudson Yards area. The property features direct entry to New York’s E and C subway trains, short walks to the B, D, N, Q, R, and 1 lines and the Port Authority Bus Terminal, crosstown bus service and shuttle service to the nearby New York Waterway ferry.
“With convenient access to transit, a slate of top-tier tenants, and a historic reputation, the iconic Worldwide Plaza building is poised for a big future. We look forward to working with NYRT and SL Green to further enhance Worldwide Plaza’s position as a commercial destination in Midtown West,” said Scott Rechler, chairman and CEO of RXR Realty.
“The acquisition of Worldwide Plaza allows us to expand our footprint on Manhattan’s West Side through investing in a Class A asset that is fully leased to institutional tenants,” commented SL Green Co-Chief Investment Officer, David Schonbraun. “We are excited to partner with NYRT and RXR in our efforts to drive value at the property and participate in the growth of this neighborhood.”