Real Estate

SL Green Sells 1745 Broadway for $633 Million

NEW YORK — SL Green Realty Corp., New York City’s largest office landlord, together with its joint venture partner, Ivanhoe Cambridge, have entered into a contract to sell the leasehold office condominium at 1745 Broadway in Manhattan for $633 million, or $939 per square foot, to an institutional client of Invesco Real Estate.

Known as the Random House Tower for its largest tenant, 1745 Broadway is a 674,000-square-foot Class-A property located in the heart of Midtown West, just three blocks from Central Park and Columbus Circle. The building has offices from the 2nd to 27th floor and is 100 percent leased. The higher floors are apartments. The building occupies the entire block front between 55th and 56th Streets.

SL Green has also agreed to sell two suburban office properties, 115-117 Stevens Avenue in Valhalla, NY and Reckson Executive Park in Rye Brook, NY, to different buyers for a combined sale price of approximately $67 million. The sales of 1745 Broadway and 115-117 Stevens Avenue are expected to close in the second quarter of 2018, while the sale of Reckson Executive Park is expected to be completed in the third quarter of 2018.

These transactions are expected to generate combined net proceeds to SL Green of approximately $190 million, which will be used for the Company’s $1.5 billion stock repurchase program. To date, the Company has repurchased a total of 12,258,203 shares.

SL Green’s Co-Chief Investment Officer, David Schonbraun, commented, “After securing a long-term lease +extension with investment grade tenant, Random House, and stabilizing the asset, we determined that this was the right time to monetize our success with the property and redeploy that capital into more accretive investment opportunities, including our share repurchase program.”

115-117 Stevens includes two office buildings comprising a total of 178,000 square feet and Reckson Executive Park, located at 1-6 International Drive, consists of six Class-A office buildings totaling 540,000 square feet.

SL Green’s Co-Chief Investment Officer, Isaac Zion, commented, “We continue to make strategic divestments of non-core assets to both support the stock repurchase program and strengthen our portfolio.”