NEW YORK CITY — SL Green Realty Corp. is selling 220 East 42nd St. in Midtown Manhattan tagging the asset at $815 million, or approximately $715 per square foot. The transaction is expected to close in Q1 2020 and subject to customary closing conditions. Cushman & Wakefield is launching the marketing process.

As one of the city's largest office landlords, SL Green will use the sale proceeds to buy back stock shares. The investment approach is low leverage, according to SL Green's Co-Chief Investment Officer Isaac Zion, in a prepared statement.

At the corner of 42nd Street and Second Avenue, 220 East 42nd St., dubbed the News Building, stands 37-stories high. The art-deco skyscraper served as The New York Daily News headquarters at one point.

The 97% occupied building joined SL Green's portfolio in February 2003 for $265 million, following an initial $53.5 million preferred equity investment in September 2001. The firm repositioned and re-tenanted the property shortly thereafter. Current yield from tenant occupancy has produced the highest net operating income since SL Green's acquired it. Tenants include Visiting Nurse Service of New York, Omnicom Group, local television station WPIX and the United Nations.

Instant Insights /

SL Green Goes Under Contract for $815M Office

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