SL Green Realty Corp, Manhattan’s largest office landlord, announced that together with its partners, it has entered into a contract to sell 410 Tenth Avenue for $952.5 million.
SL Green owns 79 percent of the group that owns the 636,000 s/f office redevelopment anchored by Amazon and First Republic Bank.
As part of the sale, the venture is retaining a five interest through completion of the property’s redevelopment. The transaction is expected to close during the fourth quarter of 2020, subject to customary closing conditions.
“The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit rated tenants,” said Brett Herschenfeld, Managing Director of SL Green.
“This transaction is a perfect example of what SL Green has demonstrated successfully so many times — acquiring an undervalued asset in an off-market manner through our deep market relationships, creatively redeveloping it to class-A standards, and re-leasing the property to high quality tenants on a long-term basis. While the asset was always intended to be held as a long-term investment, the sale will allow the Company to achieve extraordinary profits, substantially reduce consolidated indebtedness and generate additional liquidity for share repurchases.”
SL Green is currently executing a building-wide redevelopment of the 20-story, future Class-A office building, which is expected to be completed in the third quarter of 2021.
Darcy Stacom of CBRE represented SL Green in the transaction.
Brookfield was rumored to be in the market to buy the property, however, sources say the asset management giant passed on the opportunity.