SL Green Sells Sutton Place Apartment for $62M
The sale is part of the REIT’s strategy to sell off non-core assets in order to invest into its development projects and share repurchase program.
NEW YORK—SL Green Realty and its joint venture partner have entered into a contract to sell 400 East 58th St, a 126-unit residential building in the Sutton Place neighborhood of Manhattan, for $62 million.
The transaction is expected to close during the third quarter of 2020 and generate net cash proceeds to SL Green of approximately $20 million. SL Green owns a 90% stake in the joint venture.
“The sale of 400 East 58th Street is a continuation of the business plan we have successfully executed over the last several years to dispose of non-core assets at attractive market values and re-invest the proceeds into our development projects and our share repurchase program,” says Chief Investment Officer David Schonbraun in prepared remarks.
SL Green acquired the building in 2012 as part of an eight-building portfolio of retail and multi-family properties. The 16-story property also includes approximately 3,800 square feet of commercial space. The rental units are currently 97% occupied.
Simon Ziff and Marc Sznajderman of Ackman-Ziff Real Estate Group represented SL Green in the transaction.
The REIT has closed or placed under contract several assets since April, totaling $919.3 million. These include the sale of the retail condominium at 609 5th Ave. for $168 million and the 49.5% joint venture interest sale in One Madison Avenue to the National Pension Service of Korea and Hines Interest.
It has also generated $485.1 million from the debt and preferred equity portfolio through the sale of five DPE positions totaling $259.1 million.
SL Green has also achieved a goal announced earlier in the year, to amass at least $1 billion of cash as a strategic reserve. It has since restarted its share repurchase program, repurchasing $44.1 million of common stock in the second quarter.