NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has entered into an agreement to acquire 10 East 53rd Street, a 388,000-square-foot class A office building located in Manhattan, from Cariplo Pension Fund for $252.5 million. The 37-story building is currently 91 percent leased to tenants including Harper Collins.
Additionally, SL Green entered into a joint venture agreement with an institutional partner and will hold a 55 percent stake in the venture. The company intends to implement a significant capital improvement program along with a targeted leasing and marketing campaign to reposition and reintroduce the building in the marketplace.
“The Plaza District is home to a number of Midtown’s premier trophy assets, and because of the prestige and value of these assets it is rare that an opportunity to acquire one arises,” said Andrew Mathias, president of SL Green, in a prepared statement. “When presented with the chance to add one of these assets to our core Midtown portfolio, we seized it.”
“Having recently achieved notable repositioning and leasing successes at 100 Church Street and 3 Columbus Circle, we believe that when we apply our market-leading management capabilities to 10 East 53rd Street, this Midtown office tower will become a highly coveted business address in the Plaza submarket — especially for boutique tenants seeking full-floor identity to stunning Central Park views,” he continued.
Hines Interests’ New York City office, along with Milan, Italy-based Hines Italia SGR, the firm’s Italian fund management team, assisted the seller through the strategic disposal decision, direction of the private-placement bid process and buyer selection. Darcy Stacom and William Shanahan of CBRE’s New York office represented the buyer in the transaction.
SL Green’s share price closed at $71.24 on Jan. 10, up from $67.62 a year earlier.
— Savannah Duncan