NEW YORK — SL Green Realty Corp. has agreed to sell a 43% interest in 1515 Broadway to affiliates of Allianz Real Estate, the real estate investment and asset manager within the Allianz Group. The transaction values the 1.86 million-square-foot, Class-A Times Square office building at $1.950 billion, or $1,045 per square foot. Approximately 70% of the transaction is expected to close on November 30, 2017. The balance of the transaction is scheduled to close in the first quarter of 2018.
SL Green will realize cash proceeds of approximately $416 million following completion of the deal.
1515 Broadway is located in the heart of the “bow tie” of New York’s Times Square between 44th and 45th street. The 57-story building is currently 98% leased and is home to retail tenants Skechers, Swatch, Oakley, Kiko Milano, and Line Friends along with the Minskoff Theater, one of the city’s largest live performance theaters and host to The Lion King – the highest grossing show on Broadway.
SL Green’s Co-Chief Investment Officer, Isaac Zion, said “1515 Broadway has been an extraordinary investment for SL Green and we are delighted to collaborate with our new joint venture partner, Allianz, in one of New York City’s truly special buildings.” He continued, “We look forward to a long-term, mutually beneficial relationship with Allianz on 1515 Broadway and to future investment opportunities together.”
SL Green’s President, Andrew Mathias, added “This transaction speaks to the continued strong interest from overseas investors in New York City office assets as well as the strength of the Times Square office and retail market.”
Allianz Real Estate of America’s Chief Executive Officer, Christoph Donner, added “Allianz’s investment in 1515 Broadway represents a unique and exciting opportunity to partner with SL Green and add an attractive trophy asset, with significant upside in the coming years, to our growing portfolio in New York City”.
SL Green purchased 1515 Broadway as part of a joint venture in 2002 and acquired full control of the building in 2011. In 2012, following a comprehensive redevelopment of the property that included the re-positioning of all retail space, a new lobby, new elevators, revitalized building systems along with new state-of-the-art signage, Viacom signed a long-term lease renewal and will occupy the building’s office space through 2031.