SL Green Sells Two Residential Stakes for Total Value of $991.6M

SL Green Realty has entered into a contract to sell its 20% interest in 605 West 42nd St., also known as “Sky”, for a gross valuation of $858.1 million to The Moinian Group, after which the company will fully own the building.  The Moinian Group had previously sold a minority interest in the project to SL Green.

The REIT has also separately entered into a contract to sell its interests in 400 East 57th St. for a gross valuation of $133.5 million

The Sky transaction is scheduled to close during the second quarter of 2021, while the 400 East 57th transaction is expected to close during the third quarter of 2021, each subject to customary closing conditions.

Sky, a 71-story, 948,000 square foot luxury multifamily tower, is 90% occupied and includes 295 units of dedicated affordable housing and 68,000 square feet of retail space. The REIT acquired its 20% interest in 2016 and the transaction is expected to generate net cash proceeds of $53 million.

400 East 57th Street, a 211,000 square foot multifamily property, is 70% occupied and includes 263 residential units and approximately 10,000 square feet of retail space leased to essential service providers. The transaction is expected to generate net cash proceeds of $18 million.

The sales are part of the REIT’s larger strategy of selling off non-core assets and reinvesting the proceeds into share repurchases and development projects, said Chief Investment Officer David Schonbraun. “We have seen a distinct rebound in the residential market in recent months, which validates the continued demand for New York City real estate,” he added.

A team led by Gary Phillips and Will Silverman of Eastdil Secured represented SL Green in the Sky transaction.  A team led by Marc Sznajderman of Ackman-Ziff represented SL Green in the sale of 400 East 57th Street.