Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-SL Green Realty Corp. said Thursday it will buy 600 Lexington Ave. for $193 million, a higher price tag than the $180-million figure published reports had stated earlier this week. The REIT is also assuming about $50 million of debt maturing in 2014 on the 303,515-square-foot office tower, which it’s buying from a joint venture led by Hines US Core Office Fund. The purchase price comes out to approximately $636 per square foot, according to a release.

Marc Holliday, SL Green’s CEO, says in a statement, “Recent improvements in New York City office fundamentals, coupled with improvements in the credit markets, have resulted in the New York City real estate market beginning to open up after two years in which there has been a dearth of institutional quality offerings.” Holliday says the company has “worked hard” to build its cash position “in order to be able to take advantage of opportunities quickly as the market recovers. With that in mind, we moved aggressively to lock up this opportunity, and there exists a strong likelihood that we will be able to attract a joint venture partner on this asset.”

The 36-story office tower is currently 93.6% leased, primarily to boutique full-floor tenants ranging up to 11,700 square feet, SL Green says. Over the next three years, about 54% of the space will come up for renewal, and its new owner plans to take advantage of what it believes will be gradually rising rents. The REIT says in a release that it will mount a targeted leasing and marketing campaign.

SL Green was represented in negotiations by law firm Greenberg Traurig. CB Richard Ellis represented the Hines-led JV. When the sale was first reported earlier this week, Robert Knakal, chairman of Massey Knakal Realty Services, commented that it represented “a positive sign for the market.” Two other high-profile office properties, Broadway Partners’ 750,000-square-foot 340 Madison Ave. and Shorenstein Realty Services’ 596,773-square-foot 125 Park Ave., are also drawing strong investor interest.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.