NEW YORK CITY—SL Green Realty Corp. reports it has entered into a an agreement to sell its 570 Fifth Ave. and 574 Fifth Ave. retail development sites for over $125 million.
The REIT, which is the city's largest office landlord, acquired the two properties in November 2013 for almost $79 million, netting close to $47 million in less than two years time. SL Green declined to divulge the identity of the prospective buyer. After acquiring the properties, SL Green vacated all tenants as it prepared to redevelop the site. The transaction is expected to close prior to year-end 2015. The deal calculates out to $13,690-per-square-foot (based on zoning limits).
The sale of the Fifth Avenue properties reportedly is part of SL Green's strategic real estate disposition and reinvestment strategy the company outlined in conjunction with its acquisition of 11 Madison Ave. in August for a record-setting $2.29 billion.
Says SL Green managing director Brett Herschenfeld of the pending sales deal, “With this transaction, SL Green will realize returns on its original investment that are consistent with our original underwriting without having incurred any development risk. In addition, the sale provides a source of equity capital that can be tax efficiently redeployed into Eleven Madison on an immediately accretive basis.”
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