NEW YORK CITY- SL Green Realty, one of the largest office landlords in Manhattan, has entered a 99-year ground lease of 126-132 Nassau Street, where a 98,412-square-foot office building stands. The firm plans to demolish the building to make way for a 215,000-square-foot building on the site and has already secured a tenant for a long term net ground lease condominium of the building.

"We are thrilled to announce our fourth ground-up construction project in Lower Manhattan, adding to our strong history of successful downtown projects at 180 Broadway, 33 Beekman, and 185 Broadway," said Brett Herschenfeld, managing director of SL Green, in a prepared statement. "Lower Manhattan has become a global destination, serving as a hub of commercial, residential and retail activity, and we're confident this development will build upon the momentum that downtown continues to enjoy."

David Falk and Kyle Ciminelli of Newmark Knight Frank represented the buyer on the 30-year leasehold condominium. Ross Berkowitz and Ariel Schuster of Newmark Knight Frank consulted on the transaction.

This transaction is a part of waves SL Green is making the market. According to a recent GlobeSt.com article, SL Green sold 315 West 33rd St., and an undeveloped parcel of land with a gross valuation of $446.5 million, or approximately $906 per square foot, to an affiliate of Brookfield Asset Management.

That transaction is slated to close in the second quarter of 2020, subject to customary closing conditions. The freed-up capital is expected to go to other projects the REIT is planning in the market.

"This sale is another example of SL Green's commitment to strategically divest of non-core assets and accretively redeploy the capital into our ongoing share repurchase program," said David Schonbraun, co-chief investment officer, in a prepared statement. "The transaction also serves to demonstrate the continued strong demand for high-quality Manhattan assets."

Instant Insights /

SL Green Acquires Downtown Manhattan Office for Redevelopment

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