NEW YORK — SL Green Realty Corp. (NYSE: SLG), the largest office landlord in New York City, has sold a 29 percent interest in One Vanderbilt, a 58-story office tower under construction in Midtown Manhattan.
SL Green sold a 27.6 percent interest to the National Pension Service of Korea (NPS) and a 1.4 percent interest to Hines Interest LP. NPS and Hines have committed no less than $525 million in combined equity to the project.
“NPS is an extraordinary partner for us at One Vanderbilt and will help realize our shared vision for developing the best building in New York City,” says Marc Holliday, CEO of SL Green. “Hines has been with us at One Vanderbilt from the beginning and will be a terrific addition to the joint venture.”
SL Green Realty Corp. and Hines are co-developing the building, and AECOM’s Tishman Construction is serving as the general contractor. Tishman broke ground on the project in October 2016.
Upon completion in 2020, the skyscraper will be located adjacent to Grand Central Terminal. As part of the development, SL Green has committed $220 million for public improvements to the mass transit hub.
In September 2016, SL Green closed on $1.5 billion in construction financing for the project. The funding was provided by a consortium of banks, including Wells Fargo Bank, The Bank of New York Melton, JP Morgan Chase Bank, TD Bank and Bank of China.
Designed by Kohn Pederson Fox to achieve LEED Gold standards, the 1.7 million-square-foot tower will be the tallest building in Midtown and the second tallest in New York City. One Vanderbilt will span a city block and feature column-free floor plates, ceiling heights ranging from 14.6 to 20 feet and floor-to-ceiling windows.
The property will also feature upscale dining options and a 30,000-square-foot amenity floor accessible only to tenants.
In 2014, TD Bank signed a 20-year, 200,000-square-foot lease at the property, making it the first office and retail anchor tenant of the building.
SL Green is a New York-based REIT focused primarily on acquiring and managing Manhattan commercial properties. As of Dec. 31, 2016, the company held interests in 127 Manhattan buildings totaling 47.8 million square feet, as well as ownership interests in 30 suburban buildings totaling 4.8 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.
SL Green’s stock price closed on Wednesday, Jan. 25 at $108.71 per share, up from $103.18 per share a year ago.
NPS is one of the largest pension funds in the world with approximately $475 billion in assets as of Oct. 31, 2016. Out of its total assets under management, alternative asset component comprises about 11 percent, including global real estate investments.
Hines is a privately owned global real estate investment firm founded in 1957 with locations in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services and $45.3 billion for which Hines provides third-party services.
Hines has 105 developments underway globally, and the firm’s current property and asset management portfolio includes 483 properties spanning more than 199 million square feet.
— John Nelson