SL Green Signs Deal to Sell Manhattan Building for $953 Million
Real Estate In-Depth | November 4, 2020
NEW YORK—SL Green Realty Corp. reported on Nov. 4 that together with its partners, it had entered into a contract to sell 410 Tenth Ave for $952.5 million to an undisclosed buyer.
The 636,000-square-foot Manhattan office redevelopment property is anchored by Amazon and First Republic Bank. SL Green currently owns 70.9% of the venture. As part of the sale, the venture is retaining a 5% interest through completion of the property’s redevelopment. The transaction is expected to close during the fourth quarter of 2020. Multiple published reports state the buyer of the property is The 601W Companies.
“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.”
He added, “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 comprehensive, 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.
In May 2019, SL Green acquired a majority and controlling interest in the building located along the full block front of Tenth Avenue, between 33rd and 34th streets, at the intersection of Manhattan West and Hudson Yards. In April, First Republic Bank, a leading private bank and wealth management company, signed a new 211,521-square-foot lease at the property. On Dec. 9 Amazon signed a new 335,408-square-foot lease at 410 Tenth Ave., previously known as 460 West 34th St.
As of Sept. 30, 2020, SL Green held interests in 93 buildings totaling 40.6 million square feet. This included ownership interests in 29.2 million square feet of Manhattan buildings and 10.3 million square feet securing debt and preferred equity investments.