SL Inexperienced is continuous on its plan to promote $2.5 billion value of property by placing its 1350 Sixth Avenue workplace tower up on the market.
The REIT led by Marc Holliday is eyeing a price ticket upwards of $360 million for the 600,000-square-foot constructing at East fifty fifth Road, sources instructed The Actual Deal. A deal at that value would work out to about $600 per sq. foot.
The constructing is about 80 % occupied and is being pitched to buyers on the lookout for some upside in leasing the out there house, with out the chance of a giant emptiness.
The supply got here when Amazon relocated its workplaces from the constructing to its campus close by headquartered within the former Lord & Taylor constructing.
A consultant for SL Inexperienced didn’t instantly reply to a request for remark. Darcy Stacom of StacomCRE has the itemizing.
The transfer is a part of SL Inexperienced’s plan to promote greater than $2 billion value of properties because it focuses on paying down debt amid excessive rates of interest. The corporate kicked off the initiative earlier this yr with a deal to promote a minority stake within the workplace constructing at 100 Park Avenue to Rockpoint at a $425 million valuation.
Different properties that will likely be put up on the market embrace a 25 % stake within the 1.8 million-square-foot 245 Park Avenue and a 65 % stake in 750 Third Avenue, an workplace constructing that SL Inexperienced is changing into flats.
The tower at 1350 Sixth stands throughout the road from the Fisher Brothers’ 1345 Sixth Avenue, which was valued at $1.4 billion final yr (about $700 per sq. foot) when Blackstone Group purchased a 46 % stake within the 2 million-square-foot constructing.
Sixth Avenue is benefiting from demand that’s spilling over from Park Avenue, although nonetheless recovering from a glut of accessible house. The supply price on Sixth Avenue was simply shy of 17 % on the finish of final yr, in response to Cushman & Wakefield.
That’s higher than the 20 % price alongside Fifth and Madison Avenues and the almost 30 % availability on the West Aspect. Park Avenue, by comparability, had an availability price close to 10 %.
SL Inexperienced additionally offered a retail constructing at 690 Madison Avenue, together with companion Jeff Sutton, to an unidentified purchaser for $54.5 million.
The almost 8,000-square-foot constructing is leased to the French luxurious jewellery firm Van Cleef & Arpels.
Eastdil Secured’s Gary Phillips and Will Silverman brokered the sale.
Sutton’s Wharton Properties purchased a 50-percent stake within the property for $34 million in 2014.
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