SL Green Announces Sale of 220 East 42nd Street
October 01 2019 - 4:05PM
Business Wire
Sale of Second Avenue Tower is One of NYC’s
Largest Transactions This Year
SL Green Realty Corp. (NYSE:SLG), New York City’s largest office
landlord, today announced that it has entered into a contract to
sell 220 East 42nd Street in Midtown Manhattan for total
consideration of $815.0 million, or approximately $715 per square
foot. The transaction is expected to close in the first quarter of
2020, subject to customary closing conditions.
Located on the corner of 42nd Street and Second Avenue, 220 East
42nd Street, also known as The News Building, is a 37-story
art-deco skyscraper that was originally the headquarters for The
New York Daily News. SL Green purchased the property in February
2003 for $265.0 million, following its initial $53.5 million
preferred equity investment in September 2001. The company then
commenced a multi-year repositioning and retenanting of the
property. Currently boasting occupancy of 97 percent and the
highest net operating income since SL Green’s acquisition, the
building’s tenant roster includes the Visiting Nurse Service of New
York, Omnicom Group, local television station WPIX and the United
Nations.
SL Green's Co-Chief Investment Officer, Isaac Zion,
commented, “The sale of the historic News Building demonstrates the
continued demand, both international and domestic, for large,
fully-stabilized assets in East Midtown, Manhattan’s preeminent
business district. This sale also furthers our strategy of selling
assets into a healthy investment market and using the proceeds from
these sales to repurchase deeply discounted shares of our stock
while maintaining a low leverage profile.”
Adam Spies and Doug Harmon of Cushman & Wakefield along with
Robert Verrone of Iron Hound Management facilitated the
transaction.
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York
City's largest office landlord, is a fully integrated real estate
investment trust, or REIT, that is focused primarily on acquiring,
managing and maximizing value of Manhattan commercial properties.
As of June 30, 2019, SL Green held interests in 96 Manhattan
buildings totaling 46.0 million square feet. This included
ownership interests in 27.2 million square feet of Manhattan
buildings and 18.8 million square feet securing debt and preferred
equity investments. In addition, SL Green held ownership interests
in 7 suburban properties comprised of 15 buildings totaling 2.3
million square feet in Brooklyn, Westchester County, and
Connecticut.
Forward-looking Statement
This press release includes certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and are intended
to be covered by the safe harbor provisions thereof. All
statements, other than statements of historical facts, included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future, are forward-looking statements. Forward-looking statements
are not guarantees of future performance and we caution you not to
place undue reliance on such statements. Forward-looking statements
are generally identifiable by the use of the words "may," "will,"
"should," "expect," "anticipate," "estimate," "believe," "intend,"
"project," "continue," or the negative of these words, or other
similar words or terms.
Forward-looking statements contained in this press release are
subject to a number of risks and uncertainties, many of which are
beyond our control, that may cause our actual results, performance
or achievements to be materially different from future results,
performance or achievements expressed or implied by forward-looking
statements made by us. Factors and risks to our business that could
cause actual results to differ from those contained in the
forward-looking statements are described in our filings with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of future events, new information or otherwise.
SLG- A&D
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version on businesswire.com: https://www.businesswire.com/news/home/20191001006136/en/
Investors: Matt DiLiberto Chief Financial Officer SL Green
Realty Corp. (212) 594-2700 Press: BerlinRosen
slgreen@berlinrosen.com (646) 452-5637
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