REBusinessOnline

SL Green Sells Office Property in Midtown Manhattan for $325M

Known as 635-641 Sixth Avenue, the property comprises two adjoining buildings totaling 267,000 square feet. (Photo from SL Green website)

NEW YORK CITY — SL Green Realty Corp. (NYSE: SLG) has sold 635-641 Sixth Avenue in Manhattan’s Midtown South neighborhood for a gross sales price of $325 million. The office property comprises two adjoining buildings rising eight stories and totaling 267,000 square feet.

The transaction is expected to close in the second quarter and generate net cash proceeds to SL Green of approximately $312.5 million. The buyer was undisclosed.

SL Green acquired the asset in 2012 for $173 million. The Manhattan-based office landlord completed a redevelopment of the buildings in 2015, featuring a new lobby, elevators, building systems and a penthouse rooftop equipped with a bocce court and event space. The buildings date back to the early 1900s and once housed the Simpson Crawford Department Store.

Today, the property is 94 percent leased. Software company Infor is the anchor tenant and recently executed a renewal and extension of its lease through 2030.

“New York City’s revitalization continues as does the demand for Class A office buildings,” says Harrison Sitomer, senior vice president of SL Green. “The disposition at a sales price of more than $1,200 per square foot is a result of extensive repositioning and leasing efforts at the property.”

Darcy Stacom, William Shanahan and Doug Middleton of CBRE represented SL Green in the transaction.

As of March 31, SL Green held interests in 84 buildings totaling 37.8 million square feet. The REIT’s stock price closed at $74.44 per share on Tuesday, May 18, up from $39.77 per share one year ago.

— Kristin Hiller

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