SL Green Realty Corp. has entered into a contract to sell its 25 percent interest in the commercial condominium units located at 55 West 46th Street, also known as Tower 46, for $275 million, or $793 psf, to a Brookfield Asset Management real estate fund.
The transaction is expected to close during the first quarter of 2021, subject to customary closing conditions, and generate net cash proceeds to the company of approximately $20 million.
“The sale of our interest in Tower 46 is another step in our strategy to divest of non-core assets and accretively reinvest the capital into our share repurchase program,” said David Schonbraun, Chief Investment Officer of SL Green. “The transaction also serves to further demonstrate the resiliency of the Manhattan office market and the continued demand by institutional investors for well-located, Class A real estate assets in Midtown.”
SL Green acquired the commercial condominium units at the property, consisting of office floors 2, 22 – 34, a retail store on 46th street and the building’s parking garage and fitness center, in 2014.
Paul Gillen, Anthony Ledesma, Daniel Parker and Kyle van Buitenen of Hodges Ward Elliott represented SL Green in the sale.
SL Green Realty Corp. formed a partnership with Prudential Real Estate Investors to acquire ownership of condominium units for $295 million in 2014. A fund managed by PREI on behalf of institutional investors owns a 75 percent stake under the terms of the joint venture.
Skidmore Owings & Merrill designed the tower, which was completed in 2013. The glass and steel structure features floor-to-ceiling windows on all office floors with views of the New York City skyline, on-site parking, a fitness center and bike storage.
Tenants of the 20-story office tower include Amazon and First Republic Bank. It was refinanced with a new $600 million construction loan provided by institutions led by Goldman Sachs and Wells Fargo, the real estate investment trust said last September.