Meadow Partners has bought an office property in the Plaza District of Manhattan for $312.2 million from SL Green.
This marks a major move in SL Green's $2.5 billion disposition strategy, with the New York-based firm expecting to generate net cash of roughly $100 million as a result of the sale of 10 East 53rd Street, which will be used to repay corporate debt.
Also, Harrison Sitomer, president and chief investment officer of SL Green, noted that this particular transaction is a reflection of the value it's created through redevelopment initiatives.
"Following our acquisition of the remaining ownership interest in the property in December 2024, we positioned the asset to capitalize on strong investor demand for high-quality, well-located Midtown assets, and we look forward to continuing to manage the property moving forward," he said in a statement.
SL Green first acquired the property in 2012 and bought out the remaining interest 12 years later at a gross valuation of $236 million. Over a decade ago, 10 East 53rd underwent a $64 million renovation that included a new lobby, plazas, public space, windows, bathrooms and the facade getting re-colored.
The 390,000-square-foot asset is located between Fifth Avenue and Madison Avenue. Currently, 10 East 53rd is 92 percent leased.
Newmark's Adam Spies, Adam Doneger and Avery Silverstein advised on the deal. The transaction is expected to close in the third quarter, but is subject to customary conditions.
The deal comes just days after SL Green sold a 49 percent stake in its 346 Madison Avenue office project to Tokyo-based Mori Building Co., Ltd., at a $175 million valuation. The development calls for 46 stories with roughly 850,000 square feet of rentable space. Another disposition this year included a $425 million equity sale in 100 Park Avenue to Rockpoint, which accounts for 49 percent ownership in the property.
Outside of sales, SL Green has made some offensive plays, including securing a $480 million CMBS loan in January to back its $720 million acquisition of Park Avenue Tower, which the company announced in October.
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