NEW YORK — Developer SL Green Realty Corp announced that together with its partners, it has entered into a contract to sell 410 Tenth Avenue on the West Side of Manhattan for $952.5 million.
The 636,000-square-foot office building is being redeveloped and is anchored by Amazon and First Republic Bank as tenants,. SL Green currently owns 70.9% of the venture. As part of the sale, the venture is retaining a 5% interest through completion of the property’s redevelopment. The transaction is expected to close during the fourth quarter of this year.
SL Green is involved in a comprehensive, building-wide redevelopment of the 20-story, future Class-A office building, which is expected to be completed in the third quarter of 2021. The building was formerly known as 460 West 34th Street. Amazon signed a lease last December for 335,000 square feet of office space in the building.
“The sale of 410 Tenth Avenue is yet another indication of the Manhattan office market’s resiliency and continued global demand for high-quality, trophy assets with credit rated tenants,” said Brett Herschenfeld, Managing Director of SL Green. “This transaction is a perfect example of what SL Green has demonstrated successfully so many times — acquiring an undervalued asset in an off-market manner through our deep market relationships, creatively redeveloping it to class-A standards, and re-leasing the property to high quality tenants on a long-term basis. While the asset was always intended to be held as a long-term investment, the sale will allow the Company to achieve extraordinary profits, substantially reduce consolidated indebtedness and generate additional liquidity for share repurchases.”
Darcy Stacom of CBRE represented SL Green in the transaction.